The question, “Is now a good time to buy a home?” gets tossed around frequently. But the opposite, “Is now a good time to rent?” is rarely posed. While here are valid reasons to rent including, living in a city temporarily, working on improving your credit, or uncertainties in your employment, in general, renting is more costly than owning a home. This means, the answer to our second question is likely a resounding NO. No, it’s is not a good time to rent. Here’s why:
The United States Census Bureau recently released their 2017 first quarter median rent numbers. The red graph on the right shows average rental prices in the United States from from 1988 until today
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As you can see, rents have steadily increased and have shown no signs of slowing down. If you are faced with making the decision of whether or not you should renew your lease, you might be pleasantly surprised at your ability to buy a home of your own instead.
In Colorado, the average renter in Denver paid an average of $1,365 per month. In Fort Collins, rent prices vary from $818 in the northeast part of the city to $1,254 in the southeast part of the city. Vacancies across the state are at an all time low and many more people are predicted to move to our state. Rent prices in Northern Colorado are not predicted to slow down any time soon.
If you’re worried about being able to qualify for a home mortgage loan to escape renting, you may be surprised to find:
- 80% of first-time homebuyers put down less than 20% in down payment costs. On average, all homebuyers put down only 10%
- Interest rates on mortgage rates remain extremely low and by purchasing now, you can lock in your rate.
- The average credit score of home buyers in February 2017 was just 720 – you do NOT need a perfect credit score to qualify
- 88% of landlords surveyed raised their rental rates in the last 12 months and more than half said they would bring in a new tenant at a higher price than renegotiate current rates with existing occupants
Bottom Line
One way to protect yourself from rising rents is to lock in your housing expense by buying a home. Stop paying someone else’s mortgage; purchase your own home to build equity and have something of your own. The Eusea Team in Fort Collins, Colorado specializes in first-time homebuyers and those with poor credit. We will work hard to find creative solutions with out-of-the-box thinking to find a home mortgage loan that meets your needs. Contact us to get started or with any questions! Apply today to stop paying someone else’s mortgage and build your own equity!