How to Save for a House While You’re Renting

7 Simple Money-Saving Tips for Renters

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Get a roommate. One of the easiest ways to cut your rent in half and save some big bucks is by finding a roommate. Think half the rent cost, half the utility bills, internet and cable. That adds up to some serious savings that you can apply toward your down payment. Check out these seven tips for living with a roommate.

Pay off your credit card debt. This one might seem counterintuitive — after all, you’re trying to save money, right? But it’s important to remember that your credit score and debt-to-income ratio are pretty big factors that lenders consider when deciding whether you qualify for a loan. So, when it comes time to get a mortgage, you’ll be glad you tackled that outstanding debt ahead of time.

Rent to own. This is an option for those who are interested in a property, but still need to save up cash for a down payment or build their credit score. When you’re in a rent-to-own agreement, you typically pay a one-time, non-refundable fee called “option money”, which gives you the opportunity to purchase the house in the future. Usually this price ranges from 2 to 7 percent of the purchase price of the house — a price that you and the seller will agree upon.If you’re renting a house, check with your landlord that it’s okay to run a garage sale on the property.

Budget basics. Now that you’ve set a big financial goal, it’s important to figure out a budget and stick to it. A good rule of thumb to follow is the 50/30/20 rule, where you allocate a portion of your paycheck into three categories: 50 percent towards essentials, like food and housing; 30 percent towards lifestyle, like dinner out or other entertainment; and 20 percent towards financial priorities, such as debt, retirement and savings. Since you have your sights set on a new home, try moving 5 to 10 percent of your lifestyle budget into the savings category. It might be challenging, but you’ll reap the benefits when you see your home getting closer and closer!

Ditch the unnecessary. We’re sure you’ve heard this one before, but we’ll say it again: consider cutting back on superfluous expenses. Sure, eating out and shopping are fun and entertaining indulgences, but they add up to hundreds, if not thousands of dollars, a year. For the time being, try spending less on non-essentials and you might be amazed at how much you’re saving. It’ll be worth every penny when you’re turning the key to your new home.

Set up shop. Believe it or not, a garage sale can put some serious savings in your pocket. Since you’re a renter, you might not have the space or be allowed to run a garage sale out of your abode, so ask family and friends if they have a garage to spare for a weekend.

Save your tax refund. Sure, it’s nice to get that refund check come tax season. A shopping spree, a new bedroom set, maybe a beach vacation — all fun things you can do with that “extra” income. Resist the urge to spend it on the impractical and instead stick it in your savings account.


https://www.amfam.com/resources/articles/money-matters/saving-for-a-house-as-a-renter

Posted on September 11, 2019 at 8:18 pm
John Taylor | Category: For Buyers, market news, Northern Colorado Real Estate

Friday Fun Fact – Nationally home prices have gone up!

Hot off the Press the new Federal Housing Finance Authority report!

The Federal Housing Finance Authority ranks 241 major metropolitan areas across the United States for yearly home price appreciation. The current report shows that, nationally, home prices have gone up 4.99% over the last 12 months. Colorado has 5 major metropolitan cities ranked in the 241 cities across the United States.

Here’s how the major cities rank:

        #22   Greeley = 7.94%
#27    Colorado Springs = 7.64%
#63    Fort Collins = 6.34%
#133  Denver = 4.83%
#188  Boulder = 3.41%

** Interesting fun fact: In the WORST economy of our lifetime (2008 recession), home appreciation in Fort Collins only went down 2.2%. Compare that to places like Las Vegas that went down by over 35%**
Posted on September 6, 2019 at 4:56 pm
John Taylor | Category: Economy, For Buyers, For Sellers, fun facts, Housing Trends, market news, Northern Colorado Real Estate

How much is your home worth in Northern Colorado?

If you’re thinking about selling your home, knowing how much it could be worth is a great place to start! Get a free estimate now!

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Posted on September 4, 2019 at 4:59 pm
John Taylor | Category: For Sellers, Housing Trends, Living, market news, Northern Colorado Real Estate

Friday Fun Fact – Home Prices Across the Nation

 

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Case-Shiller

The Case-Shiller Home Price Index is a well-known report in the real estate industry and a valuable way to gauge what is happening in various markets across the Nation.

The report tracks home price appreciation in the 20 largest markets in the country.

Their most recent report shows that, Nation-wide, home prices are up 2.1% year-over-year.  Last year prices were rising at 6.3%.  So, prices are still going up but not as fast as they were.

The city with the highest appreciation over the last 12 months is Phoenix with 5.8% growth followed closely by Las Vegas at 5.5%.

Denver came in at 3.4% which makes it tied for 8th place out of the 20 cities.

 

Posted on August 30, 2019 at 1:04 pm
John Taylor | Category: For Buyers, For Sellers, fun facts, Housing Trends, market news, Northern Colorado Real Estate

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The Windermere Hub App gives you access to the latest and most important news and information about Windermere. No matter where you are, you can stay connected, informed, and keep your pulse on the latest at Windermere whether it be by reading updates about the company or checking out the latest social content.

                      

Posted on August 28, 2019 at 4:47 pm
John Taylor | Category: For Buyers, For Sellers, market news, Northern Colorado Real Estate, Windsor Real Estate | Tagged

Friday Fun Fact – A Closing Window for Home Sellers

Most people know that the Spring and Summer are the most active months for real estate and that activity trails off into the Fall and Winter.

Here are the specific numbers behind this…

The number of homes sold along the Front Range in November tends to be between 15% and 29% lower than September.

That means the best window of time for current sellers to obtain a contract from a buyer and close by the end of the year will occur over the next 45 days.

For sellers who have homes on the market today, it is time to ensure that:

  • The home is priced right versus the competition
  • All of the marketing elements are in place
  • It is easy for a buyer to make an offer on the home
Posted on August 23, 2019 at 8:29 pm
John Taylor | Category: For Sellers, fun facts, Housing Trends, market news, Northern Colorado Real Estate

Mortgage Rate Forecast

Geopolitical uncertainty is causing mortgage rates to drop. Windermere Chief Economist, Matthew Gardner, explains why this is and what you can expect to see mortgage rates do in the coming year.

 

Over the past few months we’ve seen a fairly significant drop in mortgage rates that has been essentially driven by geopolitical uncertainty – mainly caused by the trade war with China and ongoing discussions over tariffs with Mexico.

Now, mortgage rates are based on yields on 10-Year treasuries, and the interest rate on bonds tends to drop during times of economic uncertainty.  When this occurs, mortgage rates also drop.

My current forecast model predicts that average 30-year mortgage rates will end 2019 at around 4.4%, and by the end of 2020 I expect to see the average 30-year rate just modestly higher at 4.6%.

Posted on June 28, 2019 at 3:30 pm
John Taylor | Category: market news | Tagged , , ,

The Housing Market in 2019

The last time we saw a balanced market was late 1990s, meaning many sellers and buyers have never seen a normal housing market.  Windermere Real Estate’s Chief Economist Matthew Gardner looks at more longer-term averages, what does he see for the future of the housing market?

 

Posted on May 31, 2019 at 3:30 pm
John Taylor | Category: market news

The Whole Story

Metro Denver has 2.1 months of inventory on the market. This means that, at the current pace of sales, it would take just over 2 months to sell every single-family home currently listed for sale.

But that’s not the whole story because inventory levels vary drastically depending upon the price of the home.

When we take a closer look at months of inventory broken down by price range this is what we see:

• Under $400,000 = 0.9 months
• $400,000 to $500,000 = 1.8 months
• $500,000 to $750,000 = 3.1 months
• $750,000 to $1,000,000 = 4.2 months
• Over $1,000,000 = 7.7 months

These numbers represent great news for move-up buyers because they can sell in a strong market and potentially move up to a market that is market that is not as strong.

 

Below is a short video with a recap of our annual Market Forecast presentation!

Posted on February 21, 2019 at 11:33 pm
John Taylor | Category: market news | Tagged , , , , , ,

Why No Bubble

There are several reasons why our Chief Economist does not believe there is a housing bubble today in the U.S.

Below is a slide he shared at our recent market Forecast events.

It shows U.S. Home ownership rate, which is simply the percentage of the population who own their home (versus renting).

The long-term average is 65% represented by the red line.

In the graph you can clearly see the bubble forming. Starting in the mid-90’s, driven by several political and economic factors, more people than ever before became homeowners.

 

 

Then, starting in, 2008, the bubble burst and the percentage tumbled back down.

Now, as you can see, we are back at a “normal” level that resembles the long-term average.

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If you would like a copy of the entire Forecast presentation, go ahead and reach out to us. We would be happy to put it in your hands.

Posted on February 6, 2019 at 11:27 pm
John Taylor | Category: market news | Tagged , , , , , , , , , , ,