Fun Facts About Renters (and Why You Should Consider Buying)

One of the most important financial decisions you have to make is whether to rent or own your home. While there are benefits to both renting and owning, many renters don't realize how much they could potentially be saving by investing in a home today. In today's blog, your Lake of the Ozarks mortgage lender offers a few facts and considerations about renting vs. buying.

Fun Facts About Renters

1. According to the National Multifamily Housing Council, 37% of households in the United States rent, while the other 63% prefer homeownership.

2. According to NAR Chief Economist Lawrence Yun, the average renter missed out on $41,000 in equity by not buying three years ago.

3. Nationally, 50% of all renters spend more than 30% of their income on housing according to the NY Times.

4. According to PulteGroup, 89% of renters think owning a home is part of the American Dream.

5. Approximately 32% of potential homebuyers plan to buy in the next couple years. 

6. Around 90% of millennials prefer owning a home over renting one. 

7. The median gross rent from 2011-2015 was $758.

8. Buying a home is roughly 45% less expensive than renting.

9. According to Trulia, rent prices have risen by 4.7% in the past year, while asking home prices have only risen 2.3%.

Considerations About Renting vs. Buying

While renting is a great short-term option, financial gains of homeownership are applicable if you plan to stay in the home for 5-10 years. With current interest rates extremely low, most renting situations are more expensive than owning. In addition, when you choose to rent, you aren't building equity. Creating an asset, providing a legacy and increasing net worth are all benefits of becoming a homeowner that you can't get as a renter. With the help of a mortgage professional at the Lake of the Ozarks, you can weigh the pros and cons of buying and renting to decide which option best suits you in the short-term and the long-term.    

While renting might be the best option for some people, you can see from the facts above that homeownership has its benefits. If you're considering purchasing a home at the Lake of the Ozarks, give me a call at 573-746-7211 to discuss your options. With mortgage rates still hovering near all-time lows, now is the time buy! I'm committed to working with you every step of the way. I'll discuss Lake of the Ozarks home financing options, offer competitive interest rates and back it up with the first-class service you deserve! 

For Lake area news, resources and tips on financial services, please 

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Should Newlyweds Buy or Rent?

Whether you recently got married or you're preparing to take that walk down the aisle, there are probably a lot of things on your mind. You have a lot of decisions to make, and now you have to make them with someone else. One of those decisions is where you're going to live. In today's blog, your Lake of the Ozarks mortgage lender discusses the topic of homeownership for newlyweds. Is renting or buying right for you?

Renting vs. Buying 

The answer to the question, "Should Newlyweds Buy or Rent?" is not black and white. The answer depends on your specific situations. There are a lot of considerations to take into account when choosing whether buying or renting is the best option for you. Take some time to evaluate your finances, your career aspirations, etc. Below, we will take a look at a few of the pros and cons of renting vs. buying as newlyweds.

Renting 

Several factors could make renting a preferable options for you. Let's take a look at some of the pros to renting a home rather than buying:

• Lower Up-Front Costs: You've just spent a ton of money on a beautiful wedding, and now you have to think about the amount of money you need to purchase a home. Buying a home means spending several thousand on a downpayment, closing costs, agent's commission, attorney's fees and more, whereas renting typically just requires first and last month's rent. If you're still thinking about how you're going to pay off your wedding/honeymoon, then adding another large debt to the mix might not be the best choice at this point in time. 
• Less Maintenance & Upkeep: When you rent, your landlord takes care of any maintenance and repair issues that arise. When you own a home, you are now responsible for taking care of everything. When it comes to upkeep, renting could be more favorable. 
• No Strings Attached: According to the U.S. Census Bureau, after age 18, the typical American can expect to move 9 times. This is where your career aspirations and life goals come into consideration. Where are you in your career? Where is your spouse? Is there a possibility you could move in the near future due to a career advancement or change? Or do you plan to stay in the same area for awhile? If you or your spouse happen to get a new job in a new state, getting out of a lease is much easier than trying to sell a house. 

Buying 

While there are some benefits to renting, as mentioned above, there are also a lot of great reasons to start your new life together in your own home. Let's take a look at some of the pros to buying rather than renting:

• Build More Wealth: When you buy a home, you are building equity. Homeowners are making an investment, whereas renters pay money each month with nothing to show for it when it comes time to move. Even if you choose to move before you're mortgage is paid off, you still have that equity that you've built up.
• More Economical: For couples that plan to stay in the same area for several years, buying a house is typically considered the more affordable option. Often times you can purchase a house with a mortgage payment less than what you'd be paying for rent. Ownership is a much better value than renting in just about every U.S. housing market.
• Great Market: The housing market has made a comeback and now is a great time to purchase a home. The market is relatively stable, home prices have reached realistic levels and mortgage rates are at historic lows. The current market is great for couples thinking about becoming homeowners. 

If you and your new spouse are thinking about buying a home at the Lake of the Ozarks, give me a call at 573-746-7211 today. When it comes to your Lake of the Ozarks home financing needs, I'm committed to working with you every step of the way. We can discuss the pros and cons together to decide if homeownership is the best option for you!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Loan Officer

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Is Renting Right For Me?

With increasing rent prices, there are a lot of things you need to consider about continuing to rent vs. buying a home at the Lake of the Ozarks. In some cases, you may be better off purchasing a home. Let's take a look at some reasons why you would want to rent rather than buy:

1. You're Not Planning on Staying in the Area Long-Term.

Renting allows more flexibility than owning. If your job requires you to move around a lot or if you're unsure how long you'll be in the same place, renting may be your best option. The upfront costs of purchasing a home at the Lake of the Ozarks can set you back financially if you move too soon after buying. However, if you plan on sticking around for awhile, homeownership is the way to go! Not only could you be saving money in the long run, you're building equity. Whether you're renting or buying, you're paying someone's mortgage, so why not have something to show for it?

2. You Don't Want to Deal with Maintenance and Other Added Costs. 

When you rent, your landlord is the one that has to deal with any maintenance issues. Once you're a homeowner, you are the one that has to find a plumber or electrician. If your dishwasher needs to be replaced, you are the one that has to pay to replace it. Upkeep of a home is something you should consider when choosing to purchase a home. However, on the other hand, when you own your own home, you don't have to wait for the landlord to take care of something. You can deal with maintenance issues and repairs on your own time. There are advantages and disadvantages to both renting and buying, and it's up to you to weigh the pros and cons to make a decision that best fits your particular situation.

3. Financially, Buying Would Be Difficult. 

For some people, buying a home is just out of reach. While you could save money in the long run, purchasing a home comes with some upfront costs that some people just can't afford. If you're in this position, the best thing to do is start saving now. Each month, put some cash aside to start building up enough to make a downpayment and cover the upfront fees. Maybe for now it's best to rent, until you get your finances in order. Take a look where you're at 6 months to a year down the road and maybe then you'll be financially ready to take on homeownership.

While there are some benefits to renting, homeownership is something to consider. If you're done spending money on rent and having nothing to show for it, give your Lake of the Ozarks mortgage lender a call at 573-746-7211. I'm here to help with all your Lake of the Ozarks home financing needs!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Loan Officer

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.