Every year, around this time, we take a moment to reflect and plan for next year. If you are renting your current home but have dreams of homeownership, your plan for the new year may include buying — and you wouldn’t be alone! If you’re looking at homes in the Denver area, hire an experienced real estate agent at SRT Lifestyle Investments.
According to the 2018 Bank of America Homebuyer Insights Report, 74 percent of renters plan on buying in the next five years, with 38 percent planning to buy in the next two years! When those same renters were asked why they disliked renting, 52 percent said that rising rental costs were their top reason, and 42 percent of renters believe that their rent will rise every year. The full results of the survey can be seen below:
It’s no wonder that rising rental costs came in as the top answer. The median asking rent price has risen steadily over the last 30 years, as you can see below:
There is a long-standing rule that a household should not spend more than 28 percent of its income on housing expenses. With nearly half of renters (48 percent) surveyed already spending more than that, and with their rents likely to rise again, why are they renting?
When asked why they haven’t purchased a home yet, not having enough saved for a down payment (44 percent) came in as the top response. The report went on to reveal that nearly half of all respondents believe that “a 20 percent down payment is required to buy a home.”
If the majority of those who believe they haven’t saved a large enough down payment because they think that they need 20 percent down to buy, that means a large number of renters may be able to buy now! If you fall into this category, contact SRT Lifestyle Investments in Denver to hire a real estate agent.
The Bottom Line
If you are one of the many renters who is fed up with rising rents but may be confused about what is required to buy in today’s market, contact a local real estate agent who can help you on your path to homeownership.