If you rent your property then there’s likely a good chance you’re already aware of the rising cost of renting, and have felt the effects of it on your bank account. It seems that landlords around the nation are increasing their rents alongside the increase in property prices. As one goes up, so too must the other. The situation is summed up quite nicely by the saying that no matter whether you rent your home or own it, you’re paying someone’s mortgage. Either you’ll be paying your own, or your rent will be paying off your landlord’s. Seeing how you’re going to be stuck paying a mortgage either way, doesn’t it make sense to be paying a mortgage of your own and enjoying the benefits that come with it?
The National Association of Realtors forecasted recently that the landlord’s market is going to continue into 2017. Not only is rent increasing, but it’s growing at a rate that is higher than overall inflation. The result is that the market is prime for buying. If you’ve already purchased your first home, then now is the time to consider getting an investment property and seeing where it can take you.
Let’s say you’re paying $1,600 a month for your rent. This equals $19,200 a year. All of that money is going to the assets of another person; essentially money of your own that you’re just throwing at someone else. There are many cases where the price of rent is higher than the cost of the mortgage, taxes, and insurance. With such cheap mortgage rates, you should at least consider having a look at how much money you could qualify for. You’d probably be surprised at the amount the bank is willing to lend you.
Let’s look at things another way. You want to own your car, right? Who would lease their car forever? The same principle can be applied to housing. Why should you lease your house forever and be a renter, when you could own your own home? Some people are put off of buying a property because of the cost of the mortgage. Mortgage rates right now are very affordable and, as we discovered earlier, the cost of the mortgage could end up being less than the current cost of your rent. You also have the freedom and security that comes with owning your own home, so what are you waiting for?