As this recession slowly turns into recovery, new renters are emerging at rates we haven’t seen since the late 1990s. Over-crowded roommates, no longer concerned about cutting expenses to the bone, are venturing out, looking for their own place. College graduates are finally finding jobs and moving out of their parents’ basements. And rental housing vacancies in NYC are dropping.
“The demand for rental housing has already started to increase,” said Peggy Alford, president of Rent.com. She expects rents to increase over each of the next two years. In fact, according to REIS, Inc., a real estate data firm providing real estate trends and forecasts, renters in New York should expect rates to rise at least five percent in 2011, with certain neighborhoods seeing increases exceeding ten percent.
As the costs to rent increase, the prospects of owning a home become more attractive. Although some New York neighborhoods have seen prices decline, as a whole, New York City properties have maintained much of their value. And most real estate professionals I’ve spoken to believe home values throughout New York will avoid a double dip. Plus, interest rates are still quite low, making a home purchase even more affordable. And I think we can all agree that rates will not remain this low for very long.
Combined, these factors equate to an excellent opportunity for home buyers.
Unless you’ve been living under a rock, you’re aware of the challenges the mortgage industry has experienced over the last few years. Although lending is much more conservative these days, condo and coop financing is still available to qualified buyers.
Think you’re qualified? In this lending environment, it’s dangerous to be over-confident. The streets are littered with shell-shocked purchasers who’ve had transactions disintegrate because “their bank” denied their loan for reasons they don’t understand. And if you think the pre-qualification letter you got from your bank is your ticket to homeownership, you’re sadly mistaken.
As the real estate and credit industries continue to evolve, only the best Mortgage Planner can keep up with industry changes, market trends, and ensure that your new home and mortgage complement your financial plans and goals.
And guess what?
The rates and fees you’ll receive are probably the same or better than if you went to “your bank.”
Don’t entrust you’re biggest financial decisions to some smooth-talking bank salesman. Stick with the pros. Call me NOW, before you find a new home.
By working together, we can ensure your transaction goes smoothly, your mortgage complements your financial plan, your loan actually closes, and that you’ll truly enjoy your new home for years to come.
Warren Goldberg is a Mortgage Planner, and published author. His interviews include Blog-Talk Radio, Newsday, and the Long Island Herald. His newsletter is read by almost two thousand subscribers.Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.