Are you in your 30s and looking to settle into a permanent home? Are you feeling the itch to grow roots? You’re not alone. More and more millennials are taking the leap. With unemployment rates for adults ages 25 to 34 falling to 5.4% in February from a high of 10.6% in October of 2009, many millennials are feeling empowered to start building some equity.
Renting vs buying
The idea of growing equity can be a hard concept for some to wrap their minds around. In this modern age where almost everything is disposable, it is hard to understand how anything can hold its value. Cars rust, furniture wears out and many computers lose half their value in the first year of ownership. Why would anyone want to buy something as expensive as a house? I’ll tell you why. Houses not only retain their value, they can also increase in worth. You can buy a home today for $300,000 that might be worth $400,000, or more, ten years from now. Homes are usually a solid investment.
Millennials that understand the value of building equity have had some other roadblocks to overcome. Limited inventory, tight credit and down-payment requirements have put home buying out of reach for many. But Seattle-based Zillow Group believes that soaring rents, and the likelihood that the Federal Reserve will increase interest rates later this year, should drive more millennials to buy.
What’s with rentals?
“Rents keep going up,” says Joe Atkins, a self-employed real estate broker in Dallas, Texas. It’s true. U.S. rental vacancy hit a 21-year low at the end of last year, according to the Census Bureau. With this decrease in supply, landlords have been bolstered to charge more. But the gap between income and rental costs keeps widening. According to Zillow the average mortgage costs 21 percent of average household income in the Dallas area in the fourth quarter. While rentals weighed in at a whopping 28.5 percent of income. With these figures climbing, it has never been a better time to own.
A good investment.
Buying a home is a good investment. But make sure to protect yourself from hidden dangers that could turn your dream home into a nightmare. Be sure that your real estate agent hires a certified termite inspector to look over your potential purchase. Termite infestations can go undetected for years. The last thing you need is to inherit someone else’s problem. Protect your purchase and be sure to make sure termites (or other pests) aren’t part of the deal.
Serving Bergen, Passaic, Hudson, Essex, Morris, Union, Middlesex, Sussex and Somerset counties, contact ChemTec Pest Control to find out how we can help you on your journey towards homeownership!