Helping Renters Become Buyers
SmartAsset™ recently reviewed rent rates in 15 major U.S. cities and determined how much income you would have to earn to afford an average two-bedroom apartment.
“In terms of rent, we see that once again Phoenix is one of the more affordable big cities in the country….you need to earn just over $41,000.” – SmartAsset.com (July 13, 2017)
What does this have to do with selling real estate? Read on.
Based on multiple studies, this personal finance tech company concluded that:
- You can rent an average 2BR apartment with an income of $41K per year (Phoenix ranked #15)
- You can save 20% down in 3.45 years (Phoenix #9); or less time for a smaller down payment1
- You can afford monthly costs on a $163K home w/20% down on $27K income (Phoenix #10)
So, according to SmartAsset, you can make less money and own a home than it takes to rent one in Phoenix. The question is, how can you leverage this information with your own clients?
2017 Arizona REALTORS® Conference Chair Mandy Neat, GRI recently helped a couple who wanted to buy, but discovered they couldn’t afford to…yet.
“My clients had the dream of home ownership, but it just wasn’t the right time for them financially,” said Neat. “The lender and I set them on a course to be in a better position to purchase in the future.
“The right time to purchase a home is when your clients are ready. Investing time in clients and knowing you did the right thing for them…no matter the commission size…is what truly matters.”
1Min. down on a $163K home in Phoenix (down payment calculator):
- 20% Conventional or 3.5% FHA w/Fair to Above Average credit
- Same as above, or 5% Conforming w/Good to Excellent credit
Related stories:
3Q2017 Phoenix Apartment Report – Marcus & Millichap (August 28, 2017)
Younger tenants driving up apartment demand in region – East Valley Tribune (August 21, 2017)
Depending on Your Job, It Could Take 2 Years—or 25—to Save for a House – realtor.com® (August 14, 2017)
Phoenix doesn’t have enough apartments short-term, either – AZ Big Media (August 3, 2017)
Cost of Renting vs. Owning a Home in Every State – GOBankingRates.com (July 24, 2017)
There are More Renters Than any Time Since 1965 – CNBC (July 20, 2017)
Apartment Construction at its Highest Level in 20 Years – RentCafe.com (July 20, 2017)