Friday, June 30, 2017 / by Marketing Team
Tips for Renters: How You Can Buy a Home and Save on Monthly Housing Expenses
Your Rent Could Be More Than A Mortgage Payment
In the U.S., rent costs have been rising to the point where they are now close to 50% more than what the average cost of buying a home would be if renters maintained the same housing expenses. Around the country, Zillow reports that renters typically pay around $1,416 per month, which equates with the same monthly expenses needed to maintain a $289,505 home, while the average U.S. single-family home is valued even lower at only $196,500. It’s no wonder that rent is considered to be more expensive than owning your own home!
With threats to housing affordability affecting each state, renters in some locations must pay as much as half of their income because of the real estate market in their area. Despite it being cheaper to pay a mortgage on a monthly basis, many renters still hold back from becoming homeowners because they can’t afford to make a down payment on a home.
However, it is important to note that Zillow’s findings show how renters can afford buy a home in 37 of the 50 cities they analyzed, even after factoring in all monthly costs, including: insurance, property taxes, and maintenance.
While renters in such markets in Cleveland and Milwaukee are able to afford homes twice the cost of the median home prices in both of those cities, where homes are at around $174,000, which is lower than the national average, San Francisco is one of the only U.S. cities where the opposite is true – because of their much higher-priced homes, valued at $865,857 or higher. But even then, Zillow does have some sage advice for renters in any vicinity: don’t let fear of housing costs keep you from not exploring all the available options that can work in your favor to make homeownership affordable!
Finding a home within your budget may mean that you must look to older homes, or those outside of your preferred neighborhood. Still, that’s not to say that you can’t set aside money you save as a first-time homeowner while paying off student loans or other debts so you can afford a larger home later. On the other hand, if you devote your time or resources on renovating a home that you don’t plan to stay in long, and get familiar with your neighbors and the surrounding community, you just might find that you are more content to stay than you originally thought – all while increasing your home’s curb appeal and home value.
The North Carolina Real Estate MarketRenters in Charlotte, North Carolina typically pay anywhere from $700 to over $1,700 per month. By contrast, Charlotte homes for sale can be as low as $134,000, and in the $220’s across the state, making monthly mortgage payments at an average of $1,100 per month, depending on the mortgage term and rate (fixed or variable).
If you would like more information on homes for sale in the Charlotte area or anywhere else around North Carolina, contact Showcase Realty today at 704-997-3794 or send us a message here!