If you are renting, you know that you have little option over your decisions to stay, go or even decorate your own home.
Landlords dictate the terms of your choices. And many renters are finding it's not such a good thing when it comes to yearly rent increases or when a landlord decides that it's time to sell. You've got to move, and quickly.
And another thing that many renters are finding--what they get for what they pay is skewed. With average rents at $2,000 for a 2 bedroom/2 bath in the Maryland Suburbs and $1,700 for the same in the Baltimore Metro markets, renters aren't getting a whole lot for that money.
Rental units in all markets remained low last month. Competition for rental units continues to keep inventory moving quickly. The Maryland economy continues to expand and new hires from outside the area are seeking housing. This remains the largest driving force for rental needs in the areas--especially around those technology and health care sectors that are seeing the biggest growth.
Those relocating to the area for jobs for at least 2-3 years are also finding that they may be better off purchasing a home instead of renting. Paying out $72,000 towards rent during their stay could have afforded them tax benefits, credit score improvements and potential equity or the ability to turn the home into an investment that will continue to build wealth--and allow the renter to help pay off the mortgage.
Interest rates remain low. Pricing still remains affordable despite the recent trending upwards of home sale prices. Buying right now with these two factors will be evident as interest and home values rise and affordability drops. Those who purchased early will be in a good position.
With some strategic planning, buyers can use their home as a wealth building tool to help fund their children's college program or their own retirement.
For more information on the rental market, or using real estate as a wealth-building investment tool, give me a call at 443-837-5645.