STILL CAN’T BUY IN 2022? HERE’S AN OPTION: RENT.

January 4, 2022

We can clearly see how the housing market has changed quite drastically from the time our parents bought our childhood home. During that era, a three-bedroom house could cost as much as 100K dollars and provide all the comforts you wanted while still allowing you to live modestly. 

 

First-time homebuyers are experiencing a lot of anxiety and fright due to a home ranking from 600K to the Million-dollar mark. As investors constantly put pressure on the housing market, the market must match that pressure. 

 

Millennials will make up a large segment of first-time home buyers in 2022, and we all know that their generation hasn’t had it easy. The amount of debt, lack of knowledge on how to budget, and saving for a dream home make it no wonder that there is so much confusion, and fear around taking that step. 

 

So I’m here to tell you about an option that not many people want to hear, but is useful for many people. And that’s to rent your first home.

 

So, how can you do this properly. 

 

  • Rent will not be your only basic expense. Having an idea of what renting will cost will help you prepare a realistic budget.

 

Think of these: 

  • real estate agent fees
  • property taxes
  • home maintenance costs
  • utilities such as water if included in the rent

 

But also consider these advantages:

  • There is no long-term commitment
  • Usually, if something breaks and you are not responsible, the landlord or superintendent will arrange for repair or replacement
  • Buying a home may be more expensive than renting

 

Budget:

  • If you spend too much on rent, you may have difficulty covering your other expenses or saving for the future
  • Generally, your household expenses and rent should not exceed 35% of your gross household income.

 

Learn about rental agreements: 

  • Tenants and landlords sign a rental agreement, or lease. Landlords authorize tenants to occupy rental units. In return, tenants must pay rent. Other terms and conditions may also be included in the contract. By signing a rental agreement, you’re agreeing to follow its terms and conditions.

 

Think about your security deposits: 

  • This can be something your landlord could ask for 
  • Also known as the last month’s rent. In most cases, a security deposit cannot exceed the cost of a month’s rent.

 

And if after all your budgeting, planning and organizing renting is still out of the question think about this 

  • A roommate ( could be easy if you’re moving in with a SO )
  • A person where you can share / split a lot of the living costs and rent. This will make it easy for you financially

 

To make sure you are not paying more than you can afford, it is always a good idea to weigh out your options, budget and ensure you are not overspending. Renting is difficult, but it could be the stepping stone to home ownership! 

 

Are you looking for professional advice? Feel free to contact me!