My husband and I have been renting since we got married a few years ago. Our landlord is not renewing our lease so we need to find another rental. When searching, we have not found anything decent for an affordable price. A friend of ours recently purchased a home and suggested we do the same. Why are rentals so high and is buying a better idea?
Rental properties have increased in price in the last few years because of supply and demand. More people are renting for several reasons:
1 – Those who have foreclosed or short saled their properties are not able to purchase because they cannot get a mortgage for a time.
2 – With home values plunging in 2008, some are not convinced that purchasing is a good financial decision.
3 – With mortgage companies tightening up on who qualifies for financing, it is more difficult to get a mortgage.
I suggest if you plan to stay in the area a few years, that you look into purchasing. If you have good jobs and credit, contact a reputable real estate agent in the area you want to live to discuss the process. Before you know it, you will be unpacking boxes in your own home (instead of someone else’s) and building equity instead of financing your landlord’s property.