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Thursday, July 23, 2015

Rents are going through the roof!

Rent costs are rising quickly!

Single family rentals account for 13% of the overall housing stock (up from 9% in 2005) and rents are heating up!  Rents are higher than they should be given the underlying real estate values. 

As a result of the higher cost of rent relative to overall household income, first time home buyer's who have now entered the market (first time home buyer home purchases are the highest this year since 2009) are discovering the value of purchasing rather than renting. 

With appreciation in home values ticking along at 4% per year nationally (and regionally 6-8% and higher in some hot selling neighborhoods), coupled with historically low interest rates, and home financing is once again available to home buyer's with good credit, reasonable debt obligations and little or no down payment. 

Purchase a home today because all the stars are lining up!
With after tax rates for home financing in the 3% range, home buyer's today are using their home purchase as a financial leveraging tool and will payoff debt that has a higher interest rate, like credit cards, student loans, department store cards and car loans, and paying off their mortgage LAST.

If a home purchase can again be viewed as an investment (steady appreciation) and as a financial leverage tool (payoff higher interest rate debt first and your mortgage last), the only thing we need to add to the equation is a beautiful house to buy for fun and financial success to begin!

Call Marty Qualls at 801-540-5108 for help with any of your mortgage questions.