In many parts of the country, the rental market has steadily picked
up over the past few years. There are a number of reasons people are
renting instead of purchasing. The burst of the housing bubble caused a
significant loss of equity in a home - which translates to a lack of
downpayment for many potential buyers. Other sellers were underwater on
their mortgages when they sold, and in addition to losing equity, also
had to dig into savings to pay the difference in order to close the sale
of the home. Distress sales have left potential buyers with marred
credit, in addition to the lack of funds to use to purchase. That
marred credit has caused mortgage investors and lenders to tighten their
strings and be a bit more cautious with loaning money out to
prospective homeowners. And then there are those potential buyers who
are "waiting in the wings" for the housing market to stabilize.
Renting, until they feel that the time is right to reinvest in the real
estate market.
All of these factors have helped create a rental
market with high demand in many areas. As the law of economics has it -
the higher the demand, the higher the price. Most markets have
experienced increased in monthly rents. Without a checks and balance
system, like appraisals in the buying segment, tenants are more apt to
pay more for, if a property is in an area that they want to live in, or
if the landlord is willing to accept the risks of a tenant's damaged
credit. With that being said - is it time for you to now consider
buying a home? Instead of signing another lease?
Is buying cheaper than renting where you are? Check this list to find out out...
http://ow.ly/uvQ5G
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