Landlords are quickly raising their rents as the national vacancy rate dips to the lowest level in two decades.
The National Association of REALTORS® recently forecast that 2015 will continue to be a “landlord’s market” as rent growth continues to run higher than overall inflation. However, NAR does project that rent growth will start to cool — though only slightly — next year: Rent growth is expected to reach 3.9 percent in 2015 compared with 4 percent this year. The annual rent inflation reached 3.5 percent in November, the highest growth since November 2008, and up from 3.3 percent in October, according to a Bureau of Labor Statistics report.
If you're paying $1,500 a month in rent, that's $18,000 a year that's going towards someone else's asset. It's basically money thrown away. In most cases, the rental cost exceeds what the mortgage would be with taxes and insurance. With mortgage rates as cheap as they are, why wouldn't you at least check into how much you would qualify for? You might be surprised what you'll find out.
Let's put it this way: you wouldn't drive a rental car permanently. You shouldn't rent a home when you can own one.
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