Recent raises in interest rates, acceleration in home prices, rigid lending standards, and student loan debt, have all kept renters at bay when it comes to homeownership. However, a recent study shows renters are now in a position to take on more financial obligations and, with rent prices rising, 2017 just might be the year to buy.
According to a report done by TransUnion, "many renters are exhibiting more credit active behaviors, such as opening a credit card, and approximately 40 percent have a prime or better credit score" (RIS Media).
Additionally, renters now have more aggregate excess payment (AEP), meaning they have the ability to afford more payments with money left over. This is not only a telling sign that renters are able to take on more financial obligations, but that they may have the ability to take on larger commitments like a down payment for a house.
Another study done by Freddie Mac showed that renters were less concerned with the price of rent than they were about other financial costs. With rent prices skyrocketing, many renters find that they may already be paying the equivalent of a mortgage payment, thus making 2017 an appealing year to buy into the real estate market.
Author:Kurt Galitski Phone: 714-957-6677 Dated: December 22nd 2016 Views: 56 About Kurt: After 15 years of founding and running a successful boutique real estate office in Costa Mesa as a l...
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