Tag Archives: renting

Money Monday: Leasing your home

The new American dream: Leasing your house

Source: The Orange County Register

In Southern California, detached, single-family rentals increased 29 percent over the last decade — vs. a 13 percent increase in apartment units, according to the most recent U.S. Census data.

Making sense of the story:

• The tally jumped to 736,400 rental houses in 2016, equal to one out of every four houses in the region. The increase matches trends elsewhere.

• California had a 27 percent gain to 1.8 million rental houses in the most recent decade. Across the nation, detached, single-family rentals jumped 30 percent to 12.5 million in 2016.

• Renters are moving into houses for space, for schools or for privacy, a recent survey by U.C.
Berkeley’s Terner Center for Housing Innovation found. Landlords, on the other hand, range
from small investors to gigantic hedge funds but also include retirees hanging onto their old
houses because they’re in high demand.

• The change could be contributing to a nationwide shortage of homes for sale. It also has
numerous implications for family wealth and for policymakers, since there now are 7 million
more renters in American than a decade ago, and nearly 414,000 more in Southern California.

• The Terner Center study found that while 80 percent of single-family tenants want to buy a home in the next five years, more than 90 percent have financial obstacles to buying.

• Nearly 27 percent of single-family renters who had been homeowners had lost a home to foreclosure. Other factors include student and consumer debt, difficulties in qualifying for a mortgage, or not being able to save for a down payment.

Read the full story: www.ocregister.com/2018/06/29/the-new-american-dream-leasing-your-house

Money Monday: Should you rent or buy real estate?

Trying to figure out if renting or buying is best for your family? Thinking about a few questions can help you answer this question.

real estate buying or renting

“Homeownership was once the cornerstone of the American Dream, but times are changing. More U.S. households are renting today than at any point in the last 50 years, according to a Pew Research Center analysis.”

  1. How long are you planning on living there?
  2. Consider all of the hidden costs associated with both renting and owning.
  3. Are you saving and investing? Or throwing your money away?

Read more on CNN’s article here: “Should you rent or buy a home?”

Money Monday: Renters can buy

Even in California, buying can be more affordable than renting.

Renters That Can Buy

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS.

Pets Influence Home Buying Decisions

The power of pets when buying real estate.

Care Your Pet

When home buyers have pets, that factors into their priorities for their future home. While the specific priorities differ from person to person, a massive 95% of consumers think that allowing animals within a housing community is important. Other preferences that consumers value include:

  • Nearby animal amenities (a walking path ranks at #1 at 54%; a nearby dog park or animal grooming also is included in the list).
  • Home features important to animal owners (not surprisingly, a fenced yard is vital to 91%, with a laminate floor coming in second as another priority for 66% of consumers).

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS.

Money Monday: Ask Yourself These Questions Before Renting or Buying

Whether to buy or rent doesn’t necessarily have a clear-cut answer. But hopefully these questions will provide some guidance:

  1. What’s your top financial priority?
  2. What do you have savings for: down payment or first and last months’ rent?
  3. How long do you plan on living in the area?

There’s five more questions to ask yourself before you rent or buy; find them here on Yahoo: “8 Questions to Ask Yourself When Deciding to Rent or Buy a House.”

Money Monday: The rental market is going gray

Renters are looking a little older these days.

There’s tough competition in the rental market these days, with more people becoming renters. And steep prices make renting instead of buying not always the most economical decision. According to CNN Money, here is what’s going on in the rental market:

for rent

“Rental applicants tend to conjure up images of recent college grads looking to start their life in the real world. But Millennials are facing increased competition from people who have already spent decades in adulthood, and may have better credit and higher income.

“Since 2005, there has been an uptick in renters, with people in their 50s and 60s making up the largest chunk of the increase, according to a recent report from the Harvard Joint Center for Housing Studies.

“In fact, the majority of all renters are currently 40 or older…”

“…But it’s expensive to be a renter right now. Rents have been on a tear recently as inventory remains tight and demand grows…” (CNN Money. “The rental market is going gray”. www.money.cnn.com/2016/01/14/real_estate/older-renters/index.html?iid=SF_LN. 14 Jan 2016).

With such high competition and prices in the rental market, it might be time for you to consider buying a home. Please give me a call to see if becoming a San Diego County homeowner would make sense for you: (619) 890-3648!

Read the rest of CNN Money’s article here.

 

Money Monday: Half of all renters can’t afford the rent

 

Nearly half of renters in the U.S. are struggling to afford their monthly payments.

IMG_5374.JPG“Experts generally recommend keeping your housing costs around 30% of your monthly income. But the number of “cost-burdened” tenants — those who spend more than 30% of their income on rent — rose to 21.3 million people last year, according to Harvard’s Joint Center for Housing Studies.

“Of those, more than 26% are “severely cost burdened” and spend more than half of their income to cover rent.

“Here’s the problem: rents are increasing much faster than wages. Inflation-adjusted rents increased 7% from 2001-2014 while household incomes dropped 9%, the report showed. At the same time, rising demand for rental units has pushed the national vacancy rate to a 30-year low, driving prices even higher…”

This article is from CNN Money. Read more at CNN Money here.

 

Potential Buyers’ Optimism

buying a homeYoung renters are still optimistic about buying a home sometime in the future — in 2013, 89% of them said they were planning on buying at some point down the road.

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