In a recent
CNBC article,
it was reported that many baby boomers are selling their current homes and
moving into rentals, rather than purchasing another home.
“Between 2009 and 2015, the number of renters aged 55 or above rose 28
percent, while those aged 34 or younger only increased 3 percent...
Meanwhile, more than 5 million baby boomers across the nation are
expected to rent their next home by 2020, according to a 2016 analysis from
Freddie Mac.”
This makes sense in the short term for many reasons. If you are moving to a
different part of town or a new region of the country, you may decide to rent
until you pick the perfect home in an area you love. However, is renting a good
long-term strategy?
A mortgage
payment remains fixed. Rents, however…
The Census Bureau recently released their 2017 third
quarter
median rent numbers. Here is a graph showing rent increases from
1988 until today:
As you can see, rents have steadily increased and are showing no signs of
slowing down. If you are faced with making the decision of whether you should
rent or buy your next home, you should take this into consideration.
Bottom Line
One way to protect yourself from rising rents is
to lock in your housing expense by buying a home instead of renting. Let’s get
together so we can help you decide what the best step is for you and your
family!
The Militello Team
Joseph Militello (978) 815-3877
Kathleen Militello (978) 500-1480
Keeping Current Matters