Rents have been rising an average of 4%-5% per year for the past five years. If these increases continue don’t be surprised if:
-Those paying $2,000 per month in rent will be paying approximately $2,500 in five short years; and
-Your rent will be over $3,000 in ten years.
Did You Know Rent Rises As Much As Four Times As Fast As Mortgage Payments?
Most renters do not understand that mortgage payments do not rise as quickly as rent payments. This is because only a small portion of the mortgage payment – real estate taxes and insurance – is subject to inflationary pressures. The majority of the payment – principle and interest – can be fixed for up to 30 years.
Assuming a 4.5% rate of housing inflation:
| Year | Mortgage Payment* | Rent |
| 1 | $2,000 | $2,000 |
| 2 | $2,018 | $2,090 |
| 5 | $2,098 | $2,492 |
*Note: This analysis does not take into consideration the fact that the mortgage payment is tax deductible and rent is not! These numbers are for illustrative purposes only.
There is only one way to stop the madness. The time to purchase is now when interest rates are low. When you own there is no landlord to call with rent increases. We have access to special programs for first time homebuyers-some of which are sponsored by the Federal Government. Our special programs require small down payments and will consider those with limited credit issues. Most importantly, you can opt for fixed rate loans, which means you can say goodbye to 5.0% annual housing payment increases.
So what are you waiting for? We have helped many of your neighbors become proud homeowners. What do you have to lose beside your landlord and a lifetime of rent increases?
Let us pre-approve a mortgage for you so that you can find the home of your dreams. There is no cost and no obligation. And when you contact us ask for our FREE Special Report: Biggest Mistakes That Home Buyers Make.
