2011 rental markets are heating up due to the demand of renting versus the eligibility of home ownership. Popular interests of renting versus buying are called “Generation Rent” in opposition to the once favorable “Homeownership Society.” In a recent Bloomberg’s article “Housing has become “a contributor to inflation and it continues to rise… Confidence in homeownership has been battered in the wake of the sub-prime-mortgage crisis, which pushed housing prices down 33 percent since July 2006, based on the S&P/Case-Shiller index of property values in 20 cities.
Bad credit not only affects interest rates, underwriting restrictions but also increasing rent prices. Strategic defaults are also factors in rent inflation; numerous bank foreclosures equal more rental sales.
If you have defaulted on your mortgage within the past 18-24 months, now is the time to repair your credit and become a homeowner again. Take advantage of the affordable housing prices and low interest rates.
FHA and USDA have improved their underwriting guidelines to accommodate lower credit scores. Reconsider your strategy of becoming a permanent tenant, the benefits of homeownership is greater than renting a property.
“Generation Rent or “Homeownerhip Society”…You choose
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