Maricopa County Rents Spiraling out of control?

To move from renting to owning, get a lender and Realtor on board NOW!

To move from renting to owning, get a lender and Realtor on board NOW!”

How hard is it out there for a renter? It seems like Maricopa County rents are spiraling out of control! I was recently talking to a colleague who’s been trying to help a friend get into a rental. Listing after listing was gone before they could even do a quick walk through. So my colleague, being the super agent that she is, decided that she would show up at the next rental listing in which her friend expressed interest, as soon as it hit the MLS. And so she did…along with 10 other interested parties. But she’s industrious and determined, and so she was first in line. She was met at the door by the listing agent. And as she walked through the home, noticing the aluminum window blinds and poorly painted cabinets, the listing agent informed my colleague that the rent is now $1650 per month, instead of $1450 as advertised in the MLS.  “Why is that?”, asks my colleague, expecting to hear that they have just added a weekly cleaning or landscape service to the rental agreement. “Because we can get it in this market”, was the answer she heard from the listing agent. And they did. But not from my colleagues friends.

This is an overheated rental market we find ourselves in right now. Do you know how much house $1650 per month can buy you? Assuming you have a 3.5% downpayment, you’re looking at between $325,000 and $350,000 depending upon taxes, insurance and HOA fees. And of that $1650 per month mortgage payment, all of the interest and property taxes are tax deductible, along with whatever closing costs the buyer paid upon purchase. And with each $1650 payment, you own a little more of that home, rather than the landlord gaining equity. And if $1650 is too rich for your blood, how about a $1250 payment? That will get you about $250,000 worth of homeownership. It gets better. If you qualify for a “Home in 5”, “Pathway to Purchase” or “Home Plus” assistance program, you can get between 5% and 10% of your loan amount in free downpayment/closing cost assistance, depending on location and qualification.

If you are renting, find out what is truly possible for your financial future. Even if you don’t plan on being in a home for more than 5 years, purchasing a home could be a money saving proposition. Don’t play the “we can charge whatever rent we want because we can get it” game. Put your money to work for YOU, not for someone who is taking advantage of an overheated market.

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