paying rent 3-5x the cost of a standard mortgage
In a world where we were brought to our knees by the unbearable loss and isolation experienced in the pandemic, we’re still struggling to stand now that we’ve been met with inflation rates that have driven many families into crisis. The U.S. Federal Reserve, Bank of Canada, Bank of England, European Central Bank and others have been steadily raising interest rates in an effort to indirectly, but effectively over time, address the rate of inflation. In the immediate term, we anticipate already-rising mortgage rates to climb to levels that will make it either completely and totally impractical or, actually impossible to buy a home.
We can pretend that these unprecedented times have made homeownership unobtainable, but we all know that a large portion of the population hasn’t been afforded the opportunity since long before. While now is most certainly not the time to purchase a property through traditional means, now is always the time to work towards obtaining an investment property - especially if you’ve been stuck paying rent for years at 3-5 times the cost of a standard mortgage.
Where to start? Your landlord.
More than likely, they’re experienced in the real estate industry and are well aware of the challenges we’re all facing in this economy. Many landlords find themselves in a position where they’ve accumulated a number of properties over the years, of which they would be relieved for a loyal tenant to remove one from their list of required maintenance. You can reach out to them and see if they would be willing to consider a rent-to-own or owner financing agreement after thorough research and consideration to your proposal, contracts and safeguards. If your current landlord isn’t in a position to come to an agreement that allows for the purchase of a property, contact your local city government or development authority and request any contacts they may have for you, along with information on programs and services developed to assist first-time homebuyers or real estate investors in their community.
Annual rates of inflation are calculated using 12-month selections of the Consumer Price Index which is provided by the Labor Department’s Bureau of Labor Statistics.
This statistical infographic appears in the October/November 2022 issue of Fortune magazine.
