Washington Gay Realtor -Buying cheaper than renting&action=edit

Washington Gay Realtor-Buying Cheaper than Renting

Washington gay realtor experts might discover that buying homes is a more affordable option than renting homes. However, even if this trend is accurate for 98 out of 100 major American cities, buyers are still struggling to save for the down payment-the number one reason buyers choose to rent over purchasing a home.

This information is according to Trulia rent vs. buy index. The index is based on asking price of rental units and homes for sale between December 2011 and February 2012.

There was a time in the past when a mortgage with a zero down payment was possible. But this was a period of loose credit requirements. Today, it is practically impossible to purchase a home without a down payment of a minimum of 3% of the home price. There are a few programs to buy homes without a down payment but few buyers qualify. Among these programs are the Veterans Affairs loans and the USDA rural development housing programs that are loans for rural areas. One of the factors that can decide if you get a zero down payment is your credit score.

Why Rent is Rising

Washington gay realtors understand that the rising rents faced by many who cannot yet afford to purchase a home is generating a dilemma in the housing market. Home prices become affordable due to the rising rents. However, rising rents create the biggest barrier to home ownership as would be homebuyers cannot put aside enough for a down payment. Basically, people are being forced to rent, causing an influx of demand, which in turn causes rents to go up even higher.

The nation’s median rent is at $712 per month while the nation’s median house payment is $647. It is estimated that the decreased vacancies in the home rental market will cause rent to rise by as much as 5% by early 2013. This can be compared to the 2.4% rise in rent seen in January. Consequently, the rise in rental homes will continue to spike. Estimations indicate rentals will rise by a minimum of 850,000 homes during the period of the next few years.

Is There Hope?

For homebuyers trapped in this catch 22 there is still hope. The majority of the factors that assess home ownership vs. renting are based mostly on the economy. As the economy recovers, there may be a shift in those renting in contrast to those buying. This shift will be fueled by a healthier economy than is currently the case. Rents will, of course, increase again in a better market, but home prices are expected to round out the picture with affordable price tags.

In the meantime, saving for a down payment may be the best way to go. Although you may not have to give a down payment, you'll encounter other expenses you’ll need to save money for, among them a private mortgage insurance. Washington gay realtors will be able to handle the needs of their clients based upon the economy. http://www.washingtondcgayrealestateagents.com Washington gay realtor