How to Save on a Mortgage Payment Whether Buying or Selling
In Trulia’s recent report, Rent vs. Buy: Roommate Edition, they examined the impact that renting with a roommate has in determining whether it is more expensive to rent or buy. The study explains:
“Since we started keeping track in 2012, it’s been a better deal to buy than rent in America’s largest housing markets – and for much of that time it hasn’t been close.”
It then goes on to ask the question:
“But does the equation change for renters who share their rent with a roommate?”
The report reveals:
“While the standard rent vs. buy analysis reveals buying is cheaper than renting in all of the nation’s 100 largest metros, this doesn’t hold true for those choosing between renting with a roommate and buying a starter home.”
It seems obvious that sharing the cost of renting your living space by taking in a roommate dramatically decreases your housing expense (which is exactly what the report concluded), but it got us thinking.
What if you purchased a home and took in that same roommate?
The savings you would gain by adding a roommate would also occur if you purchased a home. This presents an opportunity for a list of possible purchasers. Here are two examples:
1. The first-time buyer: As the report explains, many young adults already live with a roommate. If they purchased a new home, perhaps that roommate (or someone else) would be willing to rent a room in their new house. The rent could help offset the mortgage payment.
2. The empty-nester seller looking to move: Their home may no longer fit their current lifestyle. They may now be looking for something a little smaller with all the bedrooms on the ground level. These families may be able to open a bedroom to an older family member (parents, aunts & uncles, etc.). This would kill two birds with one stone.
A smaller, move-down home is almost impossible to find in the current housing market. If the seller-turned-buyer takes on a tenant, they could buy a more expensive home knowing that the additional monies needed to pay the mortgage would be offset with the additional monies they receive in rent. Secondly, the older couple (ex. parents) could get a housing option that probably far surpasses anything else available to them in the current market.
Bottom Line
Considering the concept of renting a portion of your house to be able to purchase the perfect home may make sense to many families. You will need to decide if it is right for you.
To view original article, please visit Keeping Current Matters.
It’s Time To Prepare Your House for a Spring Listing
With the market gearing up for its busiest time of year, it’s important to make sure your house shines bright among the competition.
Bridging the Gaps on the Road to Homeownership
Homeownership is an important part of building household wealth that can be passed down to future generations.
Houses Are Still Selling Fast
Homes are selling faster than the norm for this time of year – and your house may sell quickly too. Are you thinking about selling your house? Give us a call!
Why Having Your Own Agent Matters When Buying a New Construction Home
Having a trusted agent on your side can make a big difference when it comes to buying a newly constructed home!
Don’t Wait Until Spring To Sell Your House
While spring is usually the peak homebuying season, you don’t actually need to wait until spring to sell.
2 of the Factors That Impact Mortgage Rates
If you’re looking to buy a home, you’ve probably been paying close attention to mortgage rates. Ever wonder why they change?
Will a Silver Tsunami Change the 2024 Housing Market?
The thought is that as baby boomers grow older, a significant number will start downsizing their homes, but will it happen this year?
Are More Homeowners Selling as Mortgage Rates Come Down?
While there isn’t going to suddenly be an influx of options for your home search, it does mean more sellers may be deciding to list.
Experts Project Home Prices Will Increase in 2024
Expected home price appreciation also means if you’re ready, willing, and able to buy, waiting just means it will cost more later.
3 Must-Do’s When Selling Your House in 2024
A real estate professional can help you with expertise on getting your house ready to sell.