Is now the time to buy that dream home you've been considering? Washington state area information indicates mortgages are still available at good rates. With the increasingly high cost of rental units, it makes more sense than ever to explore owning your own home. Pacific Northwest Realty can be instrumental in making your dreams come true.
There's been a lot of talk lately in the Seattle Times about the number of area rental units increasing rapidly. But as the demand remains greater than the supply of rental units, the monthly rental rates are also rising. The affordable pool of rental units continues to fall as developers look for high end properties to rent that will increase their bottom line. This is not a great time to find an affordable rental unit.
Shari Olefson, real estate attorney and author of the book Financial Fresh Start, offers a couple of suggestions for gauging whether renting or owning is right for you.
- She suggests you consider the Rule of 15. If you can buy a home for less than 15 times your annual rent, it makes sense to buy. That means, if your rent is $2000 per month, or $24,000 per year, you can afford a home up to $360,000.
- As a rough guideline, Olefson suggests you can afford a home equal to 2.5 to 3 times your annual income.
While these are just guidelines and not engraved in stone, they still can help you decide what to do next.
You will also need to seriously consider your own lifestyle and such things as how you wish to spend your free time, the size of your family, your current and expected household income, and whether you plan to move in the near future or where you expect to be working. These things have enormous impact in the unforeseen costs of homeowning versus rental.
The smartest thing is to contact us at Pacific Northwest Realty so that we can help you analyze your situation and determine the best outcome for your needs. When you're ready to buy, we can help make your home ownership dreams come true.