Hey Renters, I am going to give you some tough love. If you and/or your significant other have a 640 credit score or higher, have a combined monthly income greater than 2 times your monthly rent, and have less than 50% debt-to-income, (and have some money saved up… but I’m talking less than $20,000), then there is absolutely no reason why you should be renting!!!!
You are giving your money away and putting it into someone else's bank account. Literally.
Please read that over and over until you understand that even if you don’t plan on staying in the same house (or even the same state) that owning a house will give you much more advantages than renting… one of those being a huge financial advantage!
Let me explain more.
As of today (October 1, 2020), there are less rentals on the market than last year and rental rates have increased 10% in all of Maricopa County. Rental rates have increased 13% in Phoenix alone. In other words, renting a home is getting more expensive and your selection is extremely slim. That means you could be paying MORE for a LESS DESIRABLE home that you (more than likely) have to sign a yearly lease for. Again, this is money you will never get back.
It is better than ever to buy a house right now because of the historically low interest rates. Mortgage rates in 2019 averaged 3.9%. On a National level, the interest rate TODAY is only 3.05% but here in Phoenix, interest rates are even lower:
Having a low interest rate is important because it determines how affordable your monthly mortgage payment will be. For example, a loan of $300,000 at 2.5% interest rate means you will pay $1,185/month (not including taxes and fees). The average rent in Phoenix is $1,141 and the average apartment size is 801 sqft. So basically, for just $44 more a month you could own your own home and gain enough equity to make a profit when it comes time to sell. Still not sure?
Arizona’s housing prices are currently increasing every month. It has one of the fastest growing home prices in the Nation! In fact, even the sale of manufactured homes (mobile homes) increased by 10% this year.
The population is only expected to grow in Phoenix Metro, which means now is the best time to buy. With the development of Luke Airforce basealone, the population in the west valley is projected to grow 24,000 - the size of a small city- by 2026. Amazon’s third facility in Goodyear is also expected to contribute to the growing population. It’s no wonder Zillow decided to open its first brokerage here in Arizona… our housing market is a gold mine!
So, let me repeat myself again: If you’re renting and you qualify to buy a house, there is absolutely no reason why you should sign another lease. Ever again.
If you don’t know whether you qualify to buy a house, it’s simple to find out! Send me a message and we can get started!
Some Key Points:
Home prices are increasing every month
Arizona has one of the fastest growing home prices in the Nation
There’s a 10% increase in manufactured homes
Rental rates in Phoenix increased by 13% from last year
Rental rates in Maricopa County increased by 10% from last year
Interest rates in Arizona are 2.5% FHA; 2.75% Conventional; 2.375% VA
National interest rate is 3.05%
Author:Sarah June Crites Phone: 619-869-3916 Dated: October 1st 2020 Views: 1,906 About Sarah June: Hi! I'm Sarah June Crites, your Real Estate Leader!
I am a Mother, wife, and dog Mom serving the...
View our latest blog posts in your RSS reader. Click here to access.