Tag Archives: renters

More Than: Affording a Home – Complete Guide

30 Monday Mar 2026

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Home shopping can be tough when you’re not sure how much you can afford. If you’ve wanted to live the dream of owning your own home in Jacksonville or anywhere in Florida, but haven’t been sure where to start, we’ve put together a few practical tips that can make it easier to get a handle on your budget and find the right price range. These guidelines help turn the uncertainty into confidence so you can focus on finding a home that fits your lifestyle.

Tax benefits usually mean you can afford more than your rent. Interest deductions on taxes, along with property tax benefits, typically translate into significant savings that renters don’t get. Many first-time buyers find they can comfortably afford about 33% more than their current rent once those tax advantages kick in. To get a quick idea of what this might mean for you, simply multiply your current monthly rent by 1.33. For example, if you’re paying $1,500 in rent, that could translate to a mortgage payment range around $2,000, opening up more options in neighborhoods like Mandarin, Riverside, or the Beaches.

A home price two-to-three times your gross annual income is usually a reasonable place to begin. This is a classic starting point lenders and financial advisors often recommend to keep things sustainable. For example, if your household earned $75,000 last year, you could begin looking in the $150,000 to $225,000 range. In Jacksonville’s current market, this range includes solid starter homes, townhomes, and even some single-family options in growing areas, giving you plenty of choices without stretching too far.

Know how much you can put down. Ideally, you’d want to have 20% of the home’s price set aside for a down payment to avoid private mortgage insurance and secure the best rates. On a $200,000 home, this would be roughly $40,000. While many buyers qualify with less, such as 3% to 5% down through programs like FHA or VA loans popular in Florida, putting down less can result in higher interest rates and monthly payments. The more you can put down upfront, the lower your long-term costs and the more equity you build from day one.

Determine your “debt factor.” Lenders will often cite the 28/41 rule when evaluating your debt load. This means your mortgage payment, including taxes and insurance (often called PITI), shouldn’t exceed 28% of your gross monthly income. Your total debt payments, including credit cards, car loans, student loans, and the mortgage, shouldn’t come to more than 41% of your gross monthly income. For instance, with a $6,000 monthly gross income, aim to keep your housing costs under $1,680 and all debts combined below $2,460. Staying within these guidelines helps ensure your new home feels comfortable rather than burdensome.

We often work with first-time buyers and renters to get themselves lined up for home ownership. If you’d like to learn more, run personalized numbers, or have any questions about getting pre-approved in today’s Jacksonville market, we’re happy to help.

Kevin and Jennifer Hanley, REALTORS The Hanley Home Team Keller Williams Realty Atlantic Partners Southside 904-515-2479 www.HanleyHomeTeam.com

Don’t Give Up on Buying a Home if You’re a Millennial Renter

27 Tuesday Sep 2022

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Almost 25% of Millennials (ages 26-41) claim they plan on renting forever according to this Apartment List article. That’s nearly double the amount since they started their ongoing survey of 31,000 Millennials in 2018.

In the grand scheme of things, 1 in 4 Millennials swearing off homeownership forever isn’t earth-shattering news. To put things in perspective, the highest rate of homeownership ever was 80% in North Dakota back in 1900. But generally speaking, the homeownership rate has hovered in the 65% range nationally for almost 5 decades. Some people will always be renters; homeownership isn’t for everyone. 

There are four main reasons they give for not buying:

  • They feel it’s financially risky (19%)
  • Don’t want the costs of maintaining a home (30%)
  • They like the flexibility renting allows (28%)
  • Can’t afford to buy a house (77%)

Obviously, by far the biggest reason is affordability. It’d be easy to chalk that up to the recent surge in home prices and rising interest rates. It’s legitimate and true. But that’s also been the main reason since well before the current market conditions. Truthfully, affordability is almost always the reason renters give for not buying, regardless of the decade. It’s never an easy financial leap to take.

However, while renting may feel like the easier, more affordable option, over time it’s not. In fact, renting is getting even more expensive. According to this Fortune article, an increasing amount of older adults are struggling to be able to pay rent. They’re constantly in fear of rent hikes that may just get to a point they can’t afford to pay. Then what?

While it’s never an easy financial leap to take, once you take the leap, your housing cost can be kept stable for years to come, and even go down as you pay off your house. Sure, it won’t be easy up front, but think of how it’ll be for you a couple of decades from now. Would you rather have an asset you can sell, or still be paying a landlord an ever-increasing amount of rent with nothing to show for it? 

Sure, prices and rates may seem high right now, but it almost always feels that way relative to the times. There’s always an area and a house you can afford to buy a house in, if you’re qualified for a mortgage. (And if you’re not, it’s worth making an effort to be qualified!) Your first house may not be everything you want or where you ideally would like to live, but it’s a first step toward taking control of being able to afford to live comfortably as you get older. It may seem years away right now, but time has a way of creeping up on you. And the cost of living does, too… 

The Takeaway:

Considering the financial burdens many Millennials have, coupled with rising interest rates and home prices, it’s no surprise that an increasing number of Millennials are saying they’ll never buy a home and remain renters forever. 

But if you can afford to rent, the chances are you can afford to buy. It might not be your dream home, or in the exact neighborhood you’d prefer, but you can buy something. Buy where (and what) you can afford now, so that you have a predictable and controllable cost of living — as well as an asset you can sell — as you grow older.

Let’s discuss your real estate goals. Jennifer Hanley, REALTOR The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2700 HanleyHomeTeam.com

Rent vs Buying – Is The Time Right to Buy?

19 Monday Apr 2021

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Making the decision to buy a home is a big one—and you want to make sure you’re ready.

But how do you know when you’re ready to make the transition from renting to homeownership?

A recent article from realtor.com outlined key questions to ask yourself when you’re determining whether you should keep renting or make the jump to homeownership, including:

  • Do I have enough savings to cover closing costs? If you’re considering buying a home, chances are, you have enough saved up for a down payment. But before you make the decision to buy, you’ll also need to make sure you have enough saved to cover all the closing costs associated with buying a home (like the appraisal and inspection).
  • How long do I plan to stay in the property? Ultimately, you want buying a home to be a smart investment; you don’t want to lose money. And in order to not lose money on the deal, you typically need to stay put for two to three years—so make sure you’re willing to settle in for at least a few years before you buy.
  • Are you prepared for maintenance? When you rent, your landlord takes care of home maintenance—but when you buy, that responsibility falls to you. Before you make the decision to buy your own home, make sure you’re ready to tackle all the home maintenance projects—and costs—that come with owning property.

The Takeaway:

Bottom line? You want to make sure that, when you buy a home, you’re ready—and asking yourself these questions can help you gauge how prepared you are to make the transition. Let us help you with your decision – Kevin and Jennifer Haley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

Homeownership Still More Affordable Than Renting In Most US Counties

25 Monday Jan 2021

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Most people think that renting a home is a more affordable option than buying. But, as it turns out, in the majority of counties across the US, the opposite is actually true.

According to the 2021 Rental Affordability Report from ATTOM Data, which analyzes rental, wage, and home price data in markets across the country, owning a median-priced three-bedroom home is more affordable than renting a three-bedroom home in nearly two-thirds (63 percent) of counties in the US—even though home prices are increasing at higher rates than rental prices in 83 percent of those counties.

“Home-prices are rising faster than rents and wages in a majority of the country. Yet, home ownership is still more affordable, as amazingly low mortgage rates that dropped below 3 percent are helping to keep the cost of rising home prices in check,“ Todd Teta, Chief Product Officer at ATTOM Data Solutions, said in the report. “It shows how both the cost of renting has been relatively high compared to the cost of ownership and how declining interest rates are having a notable impact on the housing market and home ownership.”

The Takeaway:

So, what does this mean for you? If you’ve been holding off on buying a property because you thought renting was the more affordable option, you may be able to transition to homeownership for less than you’re paying in rent—making now a great time to explore buying your own home. Give us a call to discuss today! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

Affording a Home

16 Thursday Mar 2017

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20120705160210440496000000-oHome shopping can be tough when you’re not sure how much you can afford. If you’ve wanted to live the dream of owning your own home, but haven’t been sure where to start, we’ve put together a few tips that can make it easier to get a handle on where to start.

1. Tax benefits usually mean you can afford more than your rent. Interest deductions on taxes typically translate into significant savings. Many people find they can afford about 33% more than their current rent. To get an idea of what this might be for you, multiply your current rent by 1.33.

2. A home price two-to-three times your gross income is usually a reasonable place to begin. For example, if your household made $75,000 last year, you could begin looking in the $150,000 – $225,000 range to start.

3. Know how much you can put down. Ideally, you’d want to have 20% of the home’s price set aside for a down payment. On a $200,000 home, this would be roughly $40,000. While people qualify with less, it can result in higher interest rates (which translate to higher monthly payments).

4. Determine your “debt factor.” Lenders will often cite the 28/41 rule when it comes to your debt. This means that your mortgage (plus taxes and insurance) shouldn’t exceed 28% of your gross monthly income. Your total payments (credit card, car loan, etc.) plus your mortgage shouldn’t come to more than 41% of your gross monthly income.

We often work with first-time buyers and renters to get themselves lined up for home ownership. If you’d like to learn more, or have questions, we’re happy to help.  Kevin and Jennifer Hanley, REALTORS, The Hanley Home Team – http://www.HanleyHomeTeam.com 904-515-2479