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.
Not a Crash: 3 Graphs That Show How Today’s Inventory Differs from 2008
Inventory levels aren’t anywhere near where they’d need to be for prices to drop significantly and the housing market to crash.
Real Estate Still Holds the Title of Best Long-Term Investment
Homeownership has long been tied to building wealth—and for good reason.
What To Do When Your House Didn’t Sell
If you want an expert’s advice on why your home didn’t sell, rely on a trusted real estate agent.
Do Elections Impact the Housing Market?
While Presidential elections do have some impact on the housing market, the effects are usually small and temporary. For help navigating the market, election year or not, let’s connect.
How Long Will It Take To Sell My House?
You may be wondering how long the whole process is going to take. One way to get your answer? Work with a local real estate agent.
Housing Market Forecast: What’s Ahead for the 2nd Half of 2024
Here’s what experts say you should expect for home prices, mortgage rates, and home sales.
Why a Vacation Home Is the Ultimate Summer Upgrade
If you’re excited about getting away and having some fun in the sun, it might make sense to own your own vacation home.
What You Need To Know About Today’s Down Payment Programs
If you want more information on down payment programs, the best place to start is by contacting a trusted real estate professional.
Worried About Mortgage Rates? Control the Controllables
Remember, you can’t control what happens in the broader economy. But you can control the controllables.
Home Prices Aren’t Declining, But Headlines Might Make You Think They Are
Here’s what’s really happening with home prices.