Median Mortgage Payment Now Equals Median Rent

 

Capital Economics is reporting that for the first time in 30 years the median rent payment is the same as the median mortgage payment.  Do you think this indicates that now is a good time to buy?  Absolutely.  There are certainly many factors that go into a decision to buy a home but one very large one is the monthly payment.  I have heard many people say, “I would love to buy a house but the payment would be more than I can afford.”  That isn’t necessarily the case now.  I have seen many examples of homes that have sold over the last year where the total monthly payment has been less than what the house would rent for.  The total monthly payment being: principal and interest PLUS property taxes and insurance.  This is why so many investors are buying homes now.  Cash flow.

 

Cash flow is a reason for renters to consider buying homes too.  Rents are rising in Central Oregon so why not explore the possibility of buying a home?  Especially if it means you could reduce your monthly living expenses.  Do yourself a favor, when you get that notice from your landlord that your rent is going up, call us.  We will run some numbers using examples of homes for sale where you would like to live and see if it makes sense to take the next step and talk to a lender.  We have certainly seen lending requirements tighten in the last five years but it is not impossible to get a loan.  It is even possible to get a loan with as little as 3 percent down with less than perfect credit for a primary residence.  I know it’s possible because we have clients who have done it.

 

 

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About Dan Seim

Dan Seim is the primary contributor to Preferred Residential's blog. He has been writing about real estate issues that affect home owners in Bend and Central Oregon since 2011.