Stuck in the Rental Trap? Here's How To Get Out

Blog Post Image
Real Estate

Rents are going up, and it's a problem for millions of renters. If you're feeling the pinch from higher rents every dollar must go towards your living situation which means less savings or investment capabilities as well as not being able to build on that net worth any time soon.

The good news is there might be hope - buying property could help solve this issue because even though prices may seem high now they'll come down eventually!

Compare your rent to a mortgage

Try comparing your rent to a mortgage.  One way is to multiply your rent by 12 and then again by 25.  Whatever that number is that is a good guide to a mortgage that you could probably afford right now.  This of course doesn't take into account current interest rates or the amount of a down payment.

Interest rates are hovering around all time lows right now so it is a good idea to do the math.

For example, if your rent is $2000 per month, that is $24,000 per year and $600,000 over 25 years. So all things being the same, you could probably afford a $600,000 mortgage.  Check with a Hawaii lending agent today to see.

Mortgages are cheaper than you might think

It's true that many first-time home buyers are convinced they can't afford to enter the market, but this thinking isn’t accurate. There are plenty of homes available for every budget and price range! In fact, location is what should worry us - not necessarily total cost or how much monthly mortgage payments might be on an expensive house because those things matter less in comparison with other important qualities like size/schools proximity .

Remember, when you buy a house you aren't just locking yourself into a rental contract. You are investing in a home and property have the potential to gain in value over time.

Something else to consider

Ok, with all that said there are other things to consider besides a mortgage.  There are taxes, insurance, utilities and general maintenance fees that you'll have to pay.  These must be taken into consideration too before purchasing your new home.  On the plus side you'll be creating value in your home over time as long as you keep it in good health.

In closing, keep in mind that it is never too late to escape the rental trap. When you're ready to start building your future by investing in your first home, contact me. I'm happy to share beautiful local starter home options that will suit your needs and budget.


how to find a home to buy

Find Out More About Hawaii Real Estate

What Color Should I Paint My Hawaii Home

How To Sell Your Hawaii Home Faster

A Helpful Guide For Moving Your Pet To Hawaii

105 Things To Do In Hawaii: Oahu Version [2020]

How Expensive is it to Live in Hawaii?

7 Ideas to Stage Your Hawaii Home for Sale

What Is Hawaii BAH?

FAQs for First-time Home Buyers

How to Stage Your Home for Sale

A Helpful Guide To Increase The Value Of Your Home

How to Host a Successful Garage Sale: Tips, Tricks

5 Ways Driverless Cars Will Change Your Home

3 Ways a Reverse Mortgage Might Help You

4 Home Staging Ideas That Won't Break Your Bank

Things You Should Never Say When Selling Your Home

What to Do If Your Dishwasher Isn't Cleaning

Are You Ready for Home Ownership? Find Out Here.

Buying a New Home? Move Easier With These 3 Tips

Buying an Older Home? Watch Out for These Flaws!

Buying a New Home in 2022? Fix Your Credit NoW!

A step by step guide for getting a home loan

A step by step guide for buying your first home

Downsizing? Here's What You Can Expect

What Is a Short Sale And How Does It Work?

Hammer Time: 5 Common Home Remodeling Mistakes

3 Strange Questions Potential Buyers Might Ask

Decision Time: Should I Build Or Buy A New Home?

Moving Expenses You Need To Know About

How Curb Appeal Can Pump Up Your Hawaiian Home

The Quick-and-Easy Guide to Start House Flipping

Winning the Hawaii Home Bidding Wars

Thinking about a short sale in Hawaii? Here's How

Curb Appeal Tips For Your Hawaiian Home

Stuck in the Rental Trap? Here's How To Get Out

Great Hawaii Open House Questions For Buyers

Can Kitchen Colors Affect Your Waistline?

Bathroom Dazzling Renovation Ideas For DIYers

What's The Salary You Need To Buy A Home In Hawaii

The Pros and Cons of PCSing to Hawaii

10 Things to Know Before PCSing to Hawaii

Hawaii Homeowner Tax Exemption

History of Hawaii Homes and Real Estate