We examine the hidden costs, headaches and why mortgage-free is the way to be!
Red brick house, wooden door, freshly manicured lawn, white-picket fence and a dog in the front yard. The picture of the American dream of homeownership is as old as time – and it’s about time we shift our thinking as to what it means to call a place a home. In 2022, the median price for a home in Texas reached $340,000, a 13% increase from the year prior and the highest it has ever been according to Texas Realtors.
Have you considered what happens when those fees beyond the mortgage creep in? Is there a homeowner’s association (HOA) hovering over that lawn that maybe doesn’t get mowed as much as it should? How long have termites and pests eaten at the doors and walls? Are you replacing appliances from the 90s? 80s? 70s?
Owning a home is one of the most admirable things someone can strive for, and the honeymoon phase is sweet, especially when all the paperwork is finally done, and the keys are in hand. Yet, no one can escape the hidden costs of homeownership. Here are four secrets that no one is going to tell you about owning a home and why the future is build-to-rent (BTR)!
Thirty years of stress (maybe more)
Although preparing for and paying a monthly mortgage should not be a surprise cost of homeownership, there are many uncontrollable factors that can cause your rates to change.
Because a mortgage is a personalized loan for you and your property, there are numerous factors that determine your payment including overall credit score, your initial down payment, loan type and term, and more. Furthermore, outside factors including inflation caused interest rates to spike drastically in 2022. According to TheMortgageReport, the average 30-year mortgage rate jumped almost 4% from 3.22% in January 2022 to a high of 7.08% at the end of October 2022. This is an unprecedented increase.
In a BTR home, you pay the rate you were given when you sign your lease, and it won’t be affected by unforeseen liabilities. Mortgage-free living is a future many are starting to seriously consider, and they are happier for it.
DIY or hire a specialist? The answer is neither!
When you purchase a home, you are now solely responsible for the plumbing that will eventually falter, electricity and HVAC issues that will arise, pests that tear up your lawn and walls, and a roof that will inevitably wear out over time. All of these items are expensive and time consuming.
Hassle-free living means you don’t have to worry about fixing or addressing these issues yourself. That is our job. The property management company of a BTR community offers a flexible living situation so you don’t ever have to spend your weekends mowing the lawn, checking faulty wiring and trying to fix seemingly impossible plumbing issues. We take care of it all.
What does homeowner’s insurance cover?
Not much. MarketWatch reports that home insurance costs an average of $2,417 a year for most homeowners. On top of that, the basic package that you purchased (and was required by your mortgage lender) most likely doesn’t cover actual issues that can arise. Damage from flood, lightning, hail, ice and tornadoes (we are in Texas, after all) are usually not covered in the normal selection of home insurance and often come at a hefty additional fee.
You are immediately covered from all of these issues and more when you rent a home in a BTR community, as we make sure your home is always in tip-top shape.
The HOA is always watching…
Like a friend or family member that sticks around just a little too long, an HOA that you have zero control over will be there judging, dictating and collecting fees…forever. Additionally, many HOAs require a strict review process when you want to make an external change to your home, which won’t impact you in a BTR community.
When you move into your BTR community, you’re choosing a hassle-free lifestyle.
It just makes sense.
The combination of the global pandemic, mortgage rate power creep and unprecedented demand for places to live has driven the need for more flexible living options, especially in the economically successful and growing state of Texas.
The dream of homeownership has evolved and the notion of owning property as the only way to call it home is an outdated concept.
BTR developers like Wan Bridge and their property management arms like TBD Management have made it their driving mission to offer a flexible living option that is hassle- and mortgage-free to all. Nothing is hidden from you. If you haven’t considered this lifestyle yet, what are you waiting for?
Remember, you don’t have to own to call it home!