The rising rents of Central Valley, California is old news, but the number of residents struggling to stay afloat with their rental payments is becoming a problem. An 8 year renter in Modesto was quoted in Local Fox News 40 and revealed what many others can relate to: “‘[w]e’ve been homeless and I don’t want to be homeless … [s]o, we are scraping everything we have to stay here so we don’t end up out on the streets …,'” she said.
Rental payments plague the population and will continue to do so in 2018. As quoted in the Central Valley Business Journal earlier this year, rents are continuing to rise the fastest in some Central Valley areas:
- Average rent in Stockton, Lodi, Tracy, Manteca, Modesto, Turlock, and Merced has risen year over year since 2013
- Next to Sacramento, Stockton ranked #2 in fastest mid-sized city y-o-y rent increase last year
- Tracy has some of the highest rents, averaging $1,744 for a property
- Modesto saw an 8% increase in rent prices from 2016 to 2017
To the individuals and families bogged down by increasing rents, you have a way out!
Let’s shift focus to a positive direction: home values have steadily been on the rise in Central Valley but most still sit at a more affordable price, even with steady growth. Using Stockton as an example, the chart below shows the continuing growth of rental properties and the increasing year-over-year, monthly, and quarterly increases in home sales price:
What if we told you that for a 2 bedroom home, it would cost about the same as a 2 bedroom apartment with an FHA 3.5% down loan option.
Stockton 2 bedroom rent (avg.) = $1,300
Stockton 2 bedroom home price (avg.) = $200,000
Principal + interest ( 3.5% down & 5% interest rate) = $1,036.07 + taxes & insurance
The only difference is you stop paying someone else’s mortgage AND you increase your net worth every time you make a payment and as your home appreciates in value. Stockton home values have gone up 11.1% over the past year, and Zillow predicts they will rise 5.0% within the next year. On a $200,000 home, that could be $10,000 added to your net worth. In the future, a cash-out refinance can buy you a new car, pay off debt, send yourself or a child for college, and so much more.
Platinum Home Mortgage offers loan options that can fit your needs:
✔️ Low down payments – as little as 3.5%
✔️ Grants and down payment assistance
✔️ Gift money accepted as down payment
✔️ Previous foreclosure
✔️ Previous bankruptcy
✔️ Credit as low as 580
Take advantage of rising home values in Central Valley!
Contact me for more info or a preapproval at no obligation to you