The start of a new year is a time for planning and setting goals, and every year many Tri-Citians -- and people around the country, for that matter -- make plans to stop renting and buy their own home.
If that describes you, congratulations! You're not alone. According to the 2018 Bank of America Homebuyer Insights Report, 74 percent of renters plan on buying in the next five years, and 38 percent plan to buy in the next two years.
There are a lot of smart reasons to make the move from renting to owning a home, but maybe none more important than ... MONEY. When those same renters were asked why they disliked renting, 52 percent said that rising rent payments were their top reason, and 42 percent of renters believe that their rent will rise every year.
The numbers don't lie. According to the U.S. Census Bureau, the median asking rent price has risen dramatically over the last 30 years.
Why are consumers still renting?
There's a well-known, unwritten rule that a household should not spend more than 28 percent of its income on housing expenses. With nearly half of renters (48 percent) surveyed already spending more than that, and with their rents likely to rise again ... why are they renting?
The BofA report also asked that question. When asked why they haven't bought a home yet, 44 percent said they haven't saved enough money for a down payment yet -- that was the No. 1 response. The survey revealed that almost half of all renters believe that "a 20 percent down payment is required to buy a home."
But that's a myth. Among all home buyers, the average down payment is 10 percent and for first-time home buyers, it's just six percent!
In reality, many renters are still renting because they mistakenly think a large down payment is needed to buy a home. If that describes you, or if you have questions about what it takes to buy a home in the Tri-Cities, give us a call/text and let's make sure you have all the information you need so you can decide if you're ready to buy a home.
