Rents are up more than 10% in the past year…what does this mean for you?

In this report from the Wall Street Journal, they highlight the reasons for increased rental rates with include:

More jobs are being created and younger people are going back to cities;

Lack of inventory in the housing market is forcing some would-be buyers to rent as they wait for a home they like to become available;

Smaller cities and suburban areas saw an increased interest in living/renting in those areas;

Deal sweeteners are now less common;

Moratoriums will end...eventually.

https://audioboom.com/posts/7917076-rents-are-up-more-than-10-in-the-past-year

There are two ways to view rent increases and it could mean opportunity for you rather than distress.

First, if you are a tenant paying rent, the idea of your monthly housing expense going up 10% can seem scary. In theory you would hope that your monthly income would go up the equivalent of 10% as well so the higher housing costs would actually be a wash. Unfortunately, that doesn’t always happen.

What can you do? Buying a home using a fixed rate can lock in your monthly housing costs over the long term. When you do that, as your income does increase your housing payment remains the same when you have a fixed rate. This is good news and if you are wondering how you can do this, give us a call for a consultation and we can see where you are at now and what you must to do get ready to buy if you’re not quite prepared.

Next, if you already own rental property, and increase of 10% in rents has obvious benefits. If you own a multi-unit property, that increase rate looks even better. Are you sure you are fully capitalizing on your property? If you’re not sure, give us a call.

Finally, what if you currently own a property that you live in and you’re wondering how owning rental property would benefit your long-term financial goals? Some investors start by renting out the home they currently live in and buying another home. If you have equity in your home now, this may be an opportunity for you to start an investment portfolio. This takes planning and timing so it’s a smart idea to have a consultation with us to get your strategy and action goals set.

Bottom Line: How will you see rising rents? Will it be a cause of stress, or is it possible to have it work in your favor by taking advantage of low, fixed interest rates that we have not seen in years? Our goal is always to help you understand all your options so that years from now you won’t look back and lament…”I wish I had known….”

If you would like a private consultation with our team to learn more about your options, call now: 

Direct: 281-723-9890