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When Myrtle Beach real estate took a dip in the housing market, we began to see an increase in the demand for rental properties. Following the rule for supply and demand, rent prices began to increase slowly, much like the housing prices at the peak of the market. However, those now increasing prices have begun pushing more renters into buying homes and leaving their rentals behind. Though Myrtle Beach will always have a strong rental market, the push for new desire for home ownership, due to increasing rent prices, is a sign of a strengthening housing market.
Unlike a 30 year fixed mortgage where your payment for principal and interest doesn't fluctuate, rent can be increased year after year taking a $700 a month payment to $900 as property owners have increasing costs to cover. Their costs are passed on to their renters and that affects the monthly budget of anyone renting a home. Most people rent for the benefit of not having to maintain a home at their own expense. The yard, appliances, interior, etc. Anything that goes wrong is fixed with a phone call to the property manager. As property begins to need additional maintenance, the cost of that is passed on to the tenant which eventually outweighs the convenience of renting.
With the availability of different loan programs, low down payments and historically low interest rates, purchasing a home is now less expensive than renting. In most cases, you can get a much larger home for the same monthly amount or less. Options like full coverage home warranties and builder warranties for new construction take home maintenance out of the equation as a negative, and provide homeowners with some assurance that their investment will be properly maintained for years to come.
A recent article in WMBF News addresses the concerns of renters and provides an inside perspective to renting versus buying. If you are a renter wondering if home ownership is right for you, CONTACT US.