It May be Less Expensive to Buy Than Lease
In the course of a week, I receive at least 3-4 inquiries about rentals or lease options. This month I have seen more than usual. I have actually had four different people email me about the same downtown condo. I believe it's related to the fact there are no longer 100% loans available and those who thought about buying are now looking at other alternatives, while they save their down payment and/or closing costs. Other factors include home owners who went through foreclosure or short sale and are now renting.
One thing which always come out of my conversation with those who call me about lease or lease/option is, the dream of home ownership is alive and well. Many are tired of renting; they want a bigger place, a place of their own. Now may be the time to act.
Recent news in the Indianapolis Star indicates the occupancy rate downtown has reached it's highest peak since the mid 1990's, with only 4.6% of rentals unoccupied. I see the trend around the city and in the 'burbs. My search for a young lady on Saturday showed only 9 available rentals in Avon. This is less than half of the available homes for lease just a few months ago. At the time I was looking for some clients and there were between 25-30 homes.
Numbers for available leases in other areas of homes less than $1500.00 a month.
- Pike Township has 17.
- Wayne Township has 18.
- Washington Township has 46.
- Brownsburg has 5.
- Carmel has 24.
- Zionsville has 6.
- Fishers has 15.
With school ending for the summer, many will be looking for a new rental and they may be hard to come by. There are certainly apartments available and homes which are not listed in the local search Realtors use. I used our local Realtor statistics from MIBOR to research the current and recent lease activity.
Of course, it may just be a summertime boom.
One thing's for sure. When occupancy rates go up, so do rental rates. It's that supply and demand theory which made homebuying a hot commodity a few years back. Another factor to consider for Indianapolis is the tax rate. In a few years, homes which are non-owner occupied will pay twice the tax rate as an owner occupied home, which may further drive up the price of rentals.
If you are in the market for a home, this may be the perfect time to stop paying rent and buy your home. There are special programs available for first time home buyers and rates are great right now.