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Avoid the Rental Trap in 2023

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As a renter, it’s that time of year again to make the big decision: renew rent or purchase? Before making this crucial choice, take into account all future costs associated with renting in order to get ahead.  Don’t let the hidden fees catch you off guard!

Home sweet home just got sweeter…for landlords that is! In the past year, rents have skyrocketed for both current and new tenants – talk about adding insult to injury. Based on the information from realtor.com: 

Three out of four renters (74.2%) who have moved in the past 12 months reported seeing their rent increase. The strain from recent rent hikes isn’t exclusive to renters who have recently moved. Nearly two-thirds of renters (63.2%) who have lived in their current rental between 12 and 24 months, and likely renewed their lease, have also reported increases in their rent.”

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Looking back at the past, it’s clear that history repeats itself – and when it comes to rent prices, this is definitely true. In fact, Census data shows they’ve been steadily increasing since 1988. So if you’re considering a new lease or rental agreement…brace yourself!

2023 is just around the corner and if you don’t want to get caught in astronomical rent, it’s time to consider your options. Realtor.com suggests that rents will be skyrocketing next year so make sure you have a plan before the steep charges. As you see, your rent could be going up in the year ahead!

Despite being smaller than hikes we’ve seen over recent years – at 6.3% according to projections on the graph (in green) – it still falls above the historical average from 2013-2019 shown by the blue bars. That means, if you’re planning to rent again this year and you’ve not yet renewed your lease, you may pay more when you do.

Homeownership Provides an Alternative to Rising Rents

It’s time to think outside the landlord’s box! Homeownership may be just what you need if feeling financially unstable has got you down. Not only will it provide a steady monthly cost, but there are many other rewards that come with owning your own pad too – so why not take control of YOUR destiny? As Freddie Mac says:

Monthly rent payments may increase over time, but a fixed-rate mortgage will ensure that you’re paying the same amount each month. With a fixed-rate mortgage, your interest rate is locked in for the life of loan. Steady payments allow you to budget wisely and make plans for the future.”

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If you’re looking for some financial stability this year, consider home ownership. With a fixed-rate mortgage loan, your monthly housing costs will be locked in and unchanged—so no surprises or budget adjustments when the landlord renews their lease agreement!

Homeownership is not just a place to rest your weary head, but also an opportunity for wealth building. According to the latest CoreLogic report on Homeowner Equity Insight, it’s estimated that homeowners have gained $34,300 in equity – which could be seen as ‘forced savings’ – over the last year alone! It might sound too good to be true but with renting you get nothing more than somewhere nice and quiet…so why pass up such a great opportunity?

Bottom Line

If you’re ready to take the plunge into owning a home, there’s no better time than now. Let’s chat and get right down to business! Your journey of homeownership begins here – are you ready?

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