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Are You Spending $1,000 a Month on Rent?

I enjoyed a “fun” weekend out in Urbana-  Champaign, IL, with family and friends.  We had a blast together hoping our Fightin’ Illini would improve to 7-0 against Ohio State.  Didn’t happen.   We turned the ball over too many times. That’s why I used “fun” to describe the weekend.  I was hoping it would have […]

I enjoyed a “fun” weekend out in Urbana-  Champaign, IL, with family and friends.  We had a blast together hoping our Fightin’ Illini would improve to 7-0 against Ohio State.  Didn’t happen.   We turned the ball over too many times. That’s why I used “fun” to describe the weekend.  I was hoping it would have been “great.”

When I got home I saw an interesting article that showcased interesting points from the Census Bureau’s 2012 Statistical Abstract.  I was fascinated to see that 33.4% of renters nationally pay more than $1,000 a month.  That equates to a $204,000 home with today’s fixed-rate, 30-year mortgage at 4.25%.  Not bad!  (To be fair, I didn’t include taxes, maintenance or down payment.)

This morning I went onto www.coldwellbanker.com and learned that there are 201,367 properties on our site priced between below $204,000 in the U.S. 

So if you are renting and have financial stability, don’t you owe it to yourself to explore home ownership?  Talk it through with a family member or friend.  Don’t be afraid to talk to a real estate agent, spend a few minutes with the manager of a real estate office or visit our First-Time Home Buyers Resource Center to learn.   

I know what you might be thinking.  Of course the CEO of Coldwell Banker Real Estate would push homeownership!  You’re right!  I’ve been in real estate for 36 years and know what I’m talking about.  Home ownership is a lifestyle investment that is part of the American Dream.  

I clearly recognize homeownership isn’t for everyone.  It depends on your lifestyle, job status, savings, credit history and a host of other factors. 

But with home affordability levels at their record best, I strongly suggest you take a good, hard look at homeownership. 

 

 

 

  • http://twitter.com/chaseth Chase Thompson

    Hi Jim,

    As a mortgage banker and host of a show for the real estate industry, of course I’m going to agree with your points. I’d say it was a pretty big stretch not including the ITI of PITI, though.

    I mean that 200k quickly diminishes once those things are included. I know you mentioned it in the post, but I’d think painting an accurate picture is better than putting up such a large number. The last thing I want is a prospect to call me after they read something like this and expect 200k for 1k a month.

    I could be wrong though, you have quite a few more years on me. :)

  • Pingback: To Be a Homeowner or Not to Be a Homeowner? That is the Question. at 360 Mortgage Group

  • http://twitter.com/FirstCapitalMtg First Capital

    Thanks,. I would agree It is very important to educate people on exploring the affordability of home ownership.

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