5 Ways to Deal with the Housing Market Crash. When the housing market crashes, it can feel like the world’s end. To those who have never owned a house before or who have spent their whole lives renting, this is of paramount importance. With prices decreasing and more people looking to enter the real estate market, it’s only a matter before prices drop even further.
It’s an unfortunate but necessary reality that some people cannot buy a house or afford one on their own. If you fall into one of these categories, you may consider renting. But what if you don’t have any friends or family willing to let go of their home for you to move in?
Or what if they won’t let go because they don’t trust strangers in their homes? The good news is that there are plenty of ways for renters- first-timers and old hands alike- to take advantage of this market crash without completely giving up their dream home. Here are five ways renters can still enjoy living in a great community and save money simultaneously.
Join a roommate or house share
To avoid the high costs of buying or renting your own home, house sharing is a great option.Whether it’s a friend who’s just moved out or a website that matches people up with other house sharers, you can often find a house share that doesn’t cost a cent. All you have to do is live with a couple for a few months or a few people in the house-share community, and the person you live with will often be happy to pay your bills and help you out in other ways when you need it. It’s a great way to save a ton of money while you get your feet wet in the world of renting.
Rent from an owner-occupier
This might sound like a crazy idea, but there are several advantages to renting from a landlord who owns their home. First, most landlords prefer to rent to people who will be living there long-term, and renting a room or two during a short period won’t give them any incentive to do that. This means you’ll have a much higher chance of renting with a long-term owner who is more than happy to be a landlord.
Another great thing about renting from a homeowner is that you don’t have to deal with red tape. Most US states have laws that make it easier for someone to rent their home than it would be to put up a sign advertising a rental. This means that you can often take over a lease agreement and start paying rent much faster than you could if you were trying to find a new place.
Save while renting
Housing Market Crash: Renting for an extended period is an easy way for people with no savings to get into the market. On the one hand, rent is usually significantly higher than the cost of buying a house. In most cases, you’ll be spending around 30% of your monthly income on rent, and your mortgage payments will be about 15% of your yearly earnings. This means you’ll be paying a ton of money monthly to buy a house.
Many people feel this is a bad idea even though it costs much less than a house. If you’ve been wanting to get into the market but don’t have much savings, renting is a great way to save money and get a foot in the door. You’ll have to factor in that you’ll be paying a ton of money every month into the future.
Find an apartment through an online broker.
Housing Market Crash: One of the best ways to find a great apartment is to search the Internet and look for apartments listed on Craigslist and Apartments.com. These websites often have vast databases of flats that are available to rent, and they also have a ton of helpful information that you won’t find on regular Craigslist. While many of these apartment ads are for expensive rentals, there are plenty of places that are much less expensive. You can often find something for between $1,000 and $2,000 per month, which is much less than what you would have paid for a house. When looking for a new location to call home, this is a fantastic method for cutting costs.
Please stay in your current home and take care of it.
Housing Market Crash: Buying a property before having adequate money for a down payment and closing expenses is a common error made by first-time buyers.Another big mistake is buying a home that is too expensive to maintain. It might seem like a better idea to buy a new home, but you can save a ton of money by staying in your current home.
If you’re renting and looking to save money on your mortgage payment, you can often do this by renting out the rooms in your home. Many people put their extra rooms online for a fee, making a ton of money each month just from renting the space out. You can also find other ways to make money, like through online work, to help you make money even when you’re staying in your home.
If none of the above fit you, think about buying before you move up
Housing Market Crash: If none of the ways above are working for you, you might want to seriously consider buying a house before the prices crash even more. It’s much more difficult to find a good deal on the house, and the chances that the prices will drop even more before you can buy a home are genuine. There might be a chance that you can find a decent deal before prices drop even more, and if you’re ok with that, you might want to consider buying before prices go down even further seriously.
Millions of people are looking to buy a house, and it’s much easier to find a home that isn’t worth as much as one that will be worth less. If you buy now, you’ll have a better chance of getting into a great home before the market crashes even more.