Everyone needs to buy a home in 2015. Those that already have homes need to consider moving up, or even finding second homes and investment properties. So why is buying a home so important this year? How can buyers overcome the perceived challenges?
Rentals Are Taking Over
Rentals are taking over America. More land and existing homes are turning into rentals. Home builders, large funds, and private real estate investors are converting into rentals. As a result, homeownership in the U.S. is dropping to new lows. Saturation of rentals creates a competitive environment. However, demand for rentals remains so high that rents and application requirements keep going up. While many are turning to rent as the ‘more affordable option,’ it is becoming tougher than buying. It is twice as expensive to rent as buy a home in many parts of America. Landlord screening procedures and move-in costs are now even tougher than some mortgage lender criteria.
Fortunately, there are fewer options for renters. The options that are available are more expensive and tasking than they used to be, however.
None of this is a secret. Yet, for many, buying a home still appears to have its challenges. Many still suffer with bad credit. Others expect the down payment requirements to buy a home to be too burdensome. Millennials are one of the biggest pools of prospective home buyers, but many have not yet established their credit. Many do not feel they are ready to settle down yet. Still, everyone needs to buy a home in 2015. Let’s take a look at the reasons:
The Benefits Of Homeownership
There are many benefits of homeownership. Even if you think you are not ready to settle down, or may lack the credit and finances to buy a home this year, it is worth remembering the following:
- Lower living expenses
- Tax breaks
- Ability to create your own environment
- Owning a tangible asset
- Building wealth and a nest egg
- Enhanced school performance for kids
- Eliminating housing costs in retirement
- Avoiding getting priced out of your home town by landlords
- Growing an inheritance for the next generation
- Acquiring passive income producing assets
Why Buy A Home Now?
Renting is unsustainable. It is as simple as that. There are many potential excuses not to buy a home. Many landlords and corporations would love for you to believe them. Your rent pays for their investments, expensive cars and clothes, and larger homes. We all may have to rent sometimes. But, if you stay a renter you and your family will always be captive. You’ll always be ransom to what landlords ask for. Who knows how much rent will be in 5 years? Or where you will be able to afford to live? Chances are it will be somewhere far smaller, for more money. Perhaps even in an inferior location.
At the same time; buying a home has rarely been as affordable as it is today. Interest rates remain low. Home prices are lower than they will be for many years. Buying a home now offers an incredible bargain. For many, it will make all the difference in surviving and thriving later in life. Waiting will only mean paying more for living, and paying lots more for the same home later.
Overcoming Home Buying Challenges
It’s obvious that buying a home is smart. Buying more than one home can be even better. This is the time to buy, but what if your credit isn’t perfect? What if your credit is terrible? What if you are self-employed? What if you don’t have much of a down payment?
Buying a home this year can still be easier than you think. If credit is the challenge, you can fix it. You can have negative items removed by challenging them yourself. You can use an attorney or credit repair specialist to assist you. There is an estimated 2,000 or more down payment programs in America. These programs can help provide the down payment you need. There are even programs to help with closing costs and home improvements. This is on top of the return of 100% financing, and stated income loan programs. Self-employed borrowers can take advantage of alternative mortgage lending to qualify for home loans.
There are still options for those unable to fix their credit or qualify for home loans in 2015. Rent-to-own, seller financing, and lease options can all work.
The key is not getting discouraged. Get out there and find a way to buy a home.
