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Millennials, Stop Renting

Dear Millennials,

Stop Renting.

Sarasota Home Specialists with Keller Williams on the Water – Sarasota.

Oh, my sweet, wonderful co-generationers, how are you doing? Are we holding up okay? It is tough out there for our generation. Between school debt, inflation, growing wage gaps, increased rental prices, and so much more, it can be difficult even to consider buying a home or moving out of that 300 sqft studio that faces the dumpster (or even your childhood bedroom) right now before you write it off as a “never gonna happen” item on the long list of life. I think it might help you to consider the following five reasons why you SHOULD buy right now.

1.) Rental Price Increases.
Currently, in my local area of Sarasota, FL, rental prices have soared past most of the state, including Miami, making it the most expensive city to live in Florida. The median rental rate for our area reached a price over $2,200/ mo. Not including utilities more than double the national average and a massive jump from $1,300/ mo at the end of 2019. Renting isn’t getting cheaper, not only that it’s not yours. Each month you’re providing a mortgage payment to your landlord and building no equity or possibility of return in the process. Most apartments require some deposit and typically first and last month’s rent before moving in. On average, you’re going to spend $5000 to move into a new apartment, and depending on your lease, that could change drastically when renewal comes around.

2.) Set Monthly Payments
As I mentioned above, rent has increased and will most likely continue to do so as we face a housing shortage, and others struggle with the same decision to wait to buy. That could mean your rent could also rise when it is time to renew your lease. Maybe you signed a long lease, perhaps you are locked in for a year at a phenomenal rate, and you hope that your landlord or apartment company will be loyal and what you to stay, and then you get that re-sign letter showing you your new rent will be double the current rent. Nothing has changed; no new amenities or upgrades are to be found. Buying a home will limit these surprises. If you are in a fixed-rate mortgage, your overall mortgage rate will stay the same year over year. Could you still see slight increases in tax or insurance fees? Yes, however, paying an extra $50 a month compared to an additional $1000 is much better.

3.) Homes will still appreciate
Will we see record appreciation like we did the past two years? Most likely no, but that doesn’t mean your home will not appreciate, or you will “overpay.” Are we seeing an adjustment in the market right now? Yes! with all the current uncertainty and rising interest rates, many realtors are setting clear expectations with sellers and finding that sweet spot. Homes that are correctly priced are still gone within a week, and those that are still high due to a stubborn seller or an inexperienced Realtor are sitting something that just two months ago was unheard of. Current trends show that interest rates could continue to increase, and many homes in Flordia will continue to appreciate. The house you’re looking at right now for $425k today could price out over $450k, and with rising interest rates, you may have limiting borrowing power to utilize.

It can be hard to think about buying a house right now. A LOT is happening in our world right now. I know that seeing the price of homes may deter you from taking that step; however, many options are available to make home-buying possible. Reach out to us, and let’s schedule some time to go over your options and get in touch with a local lender to go over how easy the process can be!

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