Are you a current renter entertaining the idea of home ownership? Or wondering if now is the time to purchase a home. You are not alone, the topic of timing is one we have been revisiting often. Investing in a home for the first time can be a daunting undertaking and it helps when given a push in the right direction.Taking an assessment of your home ownership desires and personal affordability are key factors that lead you toward the answer you are searching for.
In addition, an overview of current renter and buyer data may offer the additional insight needed to fully tune into your goals and sync them a timeline. Whether you start your home buying process now or later, don't worry! There are plenty of ways to reach those goals in due time.
Minnesota median household of 3 has an annual income of $73,382 and pays $1680 in rent for a two-bedroom apartment. This same income could purchase a median priced home with a 30-year term for a monthly mortgage of $1644 a month. Not only is the monthly mortgage less than the median rent, there's opportunity to reduce your mortgage payments with financial planning and rate strategies.
So, where does this lead us? Is it possible that your rental property is causing more financial strain than that of a home owner? As seen above, higher ratios are much more common among renters, actually,. Rent prices and cost of living are constantly changing as well, but not nearly at the same pace. Between 1960 and 2016 the median price of rent rose by 61%, where the annual income for renters only increased by 5%. Statistics like these are not as few and far between as you may think.
While these statistics may only provide a high-level view of financial health of renters and homeowners, it does offer a benchmark in terms of affordability.If your desires are leaning toward homeownership, with the help of a lender, it's time to establish financial strategies for a timeline that works best for you.
We here at Novum are prepared to meet you wherever you are at in your home buying journey. Reach out to us to set up an initial consultation to evaluate the next steps in your experience at novumrealty.com.
Zumper.com, iProperty, National Association of Realtors, Minnesota Realtors, FED survey of Consumer Finances, data.io, Census.gov, leg.mn.gov, Homes.com, Nerd Wallet