The premise and balanced information in this article would have been drastically different even 5 years ago, but there is one market indicator that has changed greatly. Rents in many cities including Richmond have risen sharply, and it’s a phenomenon that has not left many areas of the nation untouched. In almost any city in the nation, there were many reason to answer the buying vs. renting question with buying, and we recognize that with rents on the rise, it’s not fair for us as a brokerage to just stuff the buying mantra down one’s throat with no intelligent questions asked. Zillow CEO Spencer Rascoff had one very important tip for everyone who found themselves in this position, and advice for those on the fence.
With the sharp rise in rents, the amount of time that you are going to live in the home can be a deciding factor that will greatly help you make your decision. There is a “breakeven horizon” based on several factors such as annual rental vs. mortgage payments, and how fast the home’s value continues to appreciate. If you plan on living in the house longer than what that threshold dictates, that is one indicator that you’re better off to buy. Nationwide, that threshold is around the two year mark, especially in low-cost markets such as Omaha or Des Moines. If you are in a metro such as New York, you are definitely going to want to be in the home for 5 years, or the purchase simply does not make sense even if you sell quickly.
Renters now account for roughly 37 percent of all households, a level that has not been since since the mid-60’s. One of the most important things we as real estate professionals want to let you know is that in essence, a mortgage acts like a bit of a forced savings plan. Even though some would argue that because interest is being accumulated daily, another great feature of buying is putting the stranglehold on rising rents. Once you have found the house you want to live in, at least your mortgage amount is not going to keep rising: at this rate, it is hard to tell when that trend will level off. Richmond has become pretty hot as of late, although not as inflated as cities such as Denver or the all-time high scorer of the bona fide hipster location by the bay: San Francisco.
If you are in the phase of life where you know retirement is the next logical step, buying is incredibly wise. You will not have to relocate to another city for a job, which is one of the biggest factors influencing movement nationwide. Having a space that you can decorate to your liking is also a great reason to buy during this life phase: really sprawling out and being able to paint or do landscaping will allow for a place to live that will feel your own, instead of the confines an apartment sometimes includes. If you happen to belong to a younger age group, one of the best reasons to buy is security. Sometimes when a year lease is up on a rental, even the most knowledgeable young professional may be surprised at the hike. If you are looking to Search Chesterfield Homes For Sale, we have a link on our website to show you home in this coveted neighborhood just outside of Richmond. If you’re thinking about leaving the ranks of the rental, make sure to get in touch with us here at The Wilson Group, where we will have you covered every step of the way during your home purchase.
We are a locally owned Real Estate team right here in RVA, and we believe our motto says it all: ALL ABOUT THE EXPERIENCE!!! We strive to make our client’s need to sell or buy a home, or even their property management needs an overall great experience. Our business model is deeply founded in the fact that it is all about the experience!