If you’re currently renting and have dreams of owning your own home, it may be a good time to think about your next move. With rent costs rising annually and many helpful down payment assistance programs available, homeownership may be closer than you realize.

Aloha, Lance Owens (RS) here with LUVA Real Estate bringing you the latest in real estate news. Although these numbers below do not always correspond directly to Hawaii, indirectly they mean a lot. This is where the difference in "reading" a statistic and "talking" to a professional make all the difference in the world.... your article below.

According to the 2018 Bank of America Homebuyer Insights Report, 74% of renters plan on buying within the next 5 years, and 38% are planning to buy within the next 2 years.

When those same renters were asked why they disliked renting, 52% said rising rental costs were their top reason. The results of the survey can be seen here:

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It’s no wonder rising rental costs came in as the top answer. The median asking rent price has risen steadily over the last 30 years, as you can see below.

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There is a long-standing rule that a household should not spend more than 28% of its income on housing expenses. With nearly half of renters (48%) surveyed already spending more than that, and with their rents likely to rise again, it’s never a bad idea to reconsider your family’s plan and ask yourself if renting is your best angle going forward. When asked why they haven’t purchased a home yet, not having enough saved for a down payment (44%) came in as the top response. The report went on to reveal that nearly half of all respondents believe that “a 20% down payment is required to buy a home.”

The reality is, the need to produce a 20% down payment is one of the biggest misconceptions of homeownership, especially for first-time buyers. That means a large number of renters may be able to buy now, and they don’t even know it.

Bottom Line

If you’re one of the many renters who are tired of rising rents but may be confused about what is required to buy in today’s market, let’s get together to determine your path to homeownership.

A little about the author: Lance Owens (RS) is currently the acting 2019"Past President" for West Hawaii Association of Realtors, a Director on the State Board "Hawaii Association of Realtors" an RPAC Trustee for WHAR, and was the 2018 President for West Hawaii Association of Realtors (WHAR)