Don’t Get Caught in the ‘Renter’s Trap’

There are many benefits to homeownership, one of top ones, is being able to protect yourself from rising rents and lock in your housing cost for the life of your mortgage.

The National Association of Realtors (NAR) just released their findings of a study in which they studied “income growth, housing costs and changes in the share of renter and owner-occupied households over the past five years in metropolitan statistical areas throughout the US.”

Don’t Become Trapped

The study revealed that over the last five years, a typical rent rose 15%, while the income of renters grew by only 11%. If you are currently renting, this disparity in growth could get you caught up in a cycle where increasing rents continue to make it impossible for you to save for a necessary down payment.

The top 5 markets where renters have seen the highest increase in rents since 2009 are:

• New York, NY (50.7%)
• Seattle, WA (32.4%)
• San Jose, CA (25.6%)
• Denver, CO (24.1%)
• St. Louis, MO (22.3%)

Homebuyers, who were able to purchase their home over the same five-year period and lock in their housing costs, were able to grow their net worth as home values have increased and their mortgage balances have gone down.

Know Your Options

Perhaps you have already saved enough to buy your first home. HousingWire reported that analysts at Nomura believe:

“It’s not that Millennials and other potential homebuyers aren’t qualified in terms of their credit scores or in how much they have saved for their down payment. 

It’s that they think they’re not qualified or they think that they don’t have a big enough down payment.” (emphasis added)

According to Freddie Mac:

“Depending on their credit history and other factors, many borrowers can expect to make a down payment of about 5 to 10%. And new 3% down financing options for qualified borrowers could mean a down payment as little as $6,000 for a $200,000 home.”

Bottom Line

Don’t get caught in the trap so many renters are currently in. If you are ready and willing to buy a home, find out if you are able. Have a professional help you determine if you are eligible to get a mortgage.

Don't rely on advice from anonymous sources.  I can provide you with a lender to sit down with face to face.

Buying a Home is 35% Less Expensive than Renting!

In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States.

The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!

The other interesting findings in the report include:

• Interest rates have remained low and even though home prices have appreciated around the country (3.9%), they haven’t greatly outpaced rental appreciation (3.7%). “In the past year, these two trends have made homeownership even more affordable compared with renting.”
• Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.
• Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989. 

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now.

So why haven't you moved from renting to owning?  Call, text or email

LAWN BIKER BREAKFAST THIS SUNDAY

It's time for the best of the biker breakfasts in the local area

This Sunday at Lawn Fire and EMS

5596 Elizabethtown Rd.
Lawn, PA 17041

Also if you have a chance it is going to be bike night with the Harrisburg Senators next week 19 May 

More info here

TOWN HOME FOR OUTDOOR LIVING

This town home offers a screened porch PLUS a deck Plus a patio.  The deck and screened porch offer views all the way to the other shore. The patio is off the walk-out basement which is finished with a wet bar.

For summer fun the community pool is included in the association.

All this plus four bedrooms, an updated kitchen featuring stainless steel and ceramic tile.

Click here for additional visual tour

For your own private tour just call, text or email

Preparing your home for summer

Summer is right around the corner, and while your mind may be on sunshine and beaches, there are a few home improvement fixes you should take care of before the season hits.

Jaymi Naciri suggests 12 things to tackle before June 20.

1. Change air filters. Some manufacturers say you should change them out monthly. Although we don’t know anyone who actually does this, it’s worth noting that they do actually work more efficiently when changed out regularly, and that can save money – even though you’re spending more on the filters.
2. Change the refrigerator filter. Presumably, you’ll be drinking more water when it’s hot outside, so change the filter now and improve the taste of your water before you really need it.
3. Buy some decent outdoor furniture. Or fix yours up with outdoor paint. It’s easy to do, whether you’re dealing with wood, metal, or plastic.
4. Plant something pretty. Wait until it’s scorching and you run the risk of floppy flowers. Get info about what to plant when for your climate online.
5. Ditch ruddy throws and blankets. It’s time to bring in something light and soft. Even if you’re not one who does a big seasonal swap with your furnishings, this easy change out will make your home feel fresh and summery.
6. Change out your backsplash. If it’s dark, drab or dated, a new backsplash can give the kitchen a lift without knocking anything major down or adding anything super expensive. Choose something reflective to bounce light around the room if it is a dark space.
7. Clean the carpets. Were you aware that E. coli, salmonella, staphylococcus and other bacteria can live in the carpet? Gross, right? “Research indicates that your carpet probably contains about 200,000 bacteria per square inch, making it 4,000 times dirtier than your toilet seat,” said Men’s Health. “The average person sheds about 1.5 million skin cells every hour; these skin cells hit the rug and serve as food for germs. Add in food particles, pollen, and pet dander and you have a gratis buffet.” A vacuum cleaner might not be able to reach deep down to grab all of those germs, but a professional carpet cleaner will.
8. Plant a vegetable garden. Summer is the perfect time to start eating better. Give yourself an edge with an at-home vegetable garden. Veggies that can be planted in early spring include spinach, kale, radishes, broccoli and peas. “Summer favorites like okra, squash and tomatoes require long, hot days to grow,” said P. Allen Smith Garden Home. Get a complete how-to for planting your first garden online.
9. Clean your windows. They’re probably gross, and they’re also blocking the light.
10. Slap on some solar screens. If you’re in a high-heat area and you want to block the sun, solar screens may be the answer. “Solar screens are the most effective window treatments that you can apply to your home for lowering energy bills by stopping the heat transfer through your windows and doors while still maintaining your view,” said Lone Star Solar Screens.
11. Take on a project and make it a family affair. Summer fun doesn’t have to be relegated to vacations. Want to lay new tile in the kitchen? Take the family to the local big box store for a workshop and then get started. It might just be fun. And even if you have to overcome some occasional (or more than occasional) whining along the way, you’ll always have the pride of knowing you did it yourselves once you’re done.
12. Build a firepit. You could always buy one, but why should you when you can build one of these 38 options yourself?

If your perfect summer involves changing where you experience summer, please call text or email

4 BEDROOM TOWNHOUSE WITH FINISHED WALK-OUT BASEMENT

Click to tour 2643 Cranberry Circle, Harrisburg, PA - newly listed townhome - close to I-81, 4 bedroom 2-1/2 bath with stainless and ceramic in the kitchen and finished walk-out basement with wet bar

COMING SOON 4 BEDROOM TOWNHOME LESS THAN A MILE FROM I-81

CHECK OUT THESE FEATURES

4 bedrooms, 2-1/2 baths
Kitchen updated with stainless appliances and ceramic tile floor.
Finished walk-out basement with wet bar and patio

Deck AND screened porch with view all the way to the west shore

HOA includes use of pool, tennis courts and playground.

more info

To be at the head of the line when this home hits the market - call, text or email