PEOPLE WORKING TOGETHER
To beat the rent increases, build equity and better stabilize their monthly expenses… families are pulling their finances together to purchase a home… this is what we call multi-generational living. They realize that if they don’t buy a home now, their dream of home ownership may be and remain, well, nothing more than a dream. Good friends are doing the very same thing as they want more money in their pocket, and they also want a home that’s equity building rather than allowing rent increases to crush them financially.
ESCAPE RENT INCREASES
Many people who have the money are choosing to escape the rent increases by paying off their debt (including their vehicle). This they’re doing in order to reduce their DTI so that they can purchase a home. Even if this means tapping into their assets such as retirement, stocks, bonds, et cetera… they view it as safeguarding themselves financially. They’re making the equity of their home their single asset for the time being. Then, with the money that they save… they can begin to rebuild their retirement, stocks, bonds, et cetera…
CONSISTENT MONTHLY PAYMENT
As we all know, inflation is a current issue of great concern. Purchasing real estate when inflation is on the rise is a strategic financial move. This is because buying a home versus renting a home allows you to lock in your monthly mortgage payment for the future. So, as your other household expenses rise… your monthly payment will be consistent thanks to your fixed-rate mortgage. Buying instead of renting allows you to shield the bulk of your housing costs from inflation. Currently, the way things are going… we’re paying tomorrow’s debt with dollars that are worth less than today. So, why not shield yourself from continual rent increases for the foreseeable future?