Who Spends Too Much Money on Rent

In all my life I never thought I would hear that there are people spending more than half their income on rent and utilities. This could be in part because there are some folks now receiving unemployment. Call me crazy, but that is a high number. Think about it; I am telling you that spending more than half your income on rent and utilities isn’t good, and we had families in loans that were nearly 55% of their income. We still have all these people who have to spend more money on their rent, so there are still many things that need to change. 

Will the American Budget Crisis Change Rent? 

Our country is a financial crisis, and it makes me wonder if knowing where we are right now with rents increasing, will that change the face of the way rent is being charged? We have got to find a way to get things down and streamline all of our financial obligations to the point where we change as a nation. Given the budget crisis, we need to find better ways to maintain our properties better with minimal cost, and be able to accommodate those who need to trim down what they pay to live.

The Demands of Rent Increase, and So Does the Price

The new wave is renting, and that is because of the level of foreclosures. I am sad to say that it seems our housing market is working opposite of what it should be. The sad part? Those who were unable to stay in their homes are now going to be paying someone else’s mortgage rather than their own, and they aren’t going to be saving a heck of a whole lot. The demand on renting is going up and therefore the affordability of renting is going down. 

Why Rent is Going Up 

Rent is going up for complexes and for those who are renting out houses, simply because they know they can increase the prices and many are seeking shelter now that they can no longer stay with their relatives. Houses are getting cramped with family members taking people in, and as modifications don’t get approved. Families have been planning to look for apartments as they see their foreclosure under way, meaning they had to go and start looking quickly, so they could get everything moved out. Renting will be more expensive than in the past, but with so many foreclosures being lined up families just don’t have a choice.

Buying From the Divorced

Buying a home is stressful enough, and no transaction is exempt from its challenges, but buying from a couple that is divorcing certainly can present challenges. While these homes tend to get listed quickly and are looking to sell quickly, emotions are high, and things are said in the process that is hurtful between the husband and wife. Unfortunately, that carries over into the sale of the home, and can make things harder on the buyer.


When tension is high, there can be miscommunication between the agent and the couple. This can be frustrating for the agent in that they have a certain timeline they need to follow as well. No one gets paid until the loan closes, so everyone is waiting on pins and needles while trying to ensure that it has been a smooth transaction. The transaction can only go as smooth as what the sellers allow, and when miscommunication is a problem, everything else can go awry as well.

None of us are exempt from getting a divorce, and none of us are perfect, this is merely a warning to those who are looking to buy. There can be challenges with any purchase transaction when buying a home, and it all comes down to being prepared to wait if necessary, or being prepared to move quickly if given the chance. Remember that it is important to be considerate of the seller’s emotions as well, and by doing your part it can make as the buyer it will make things smoother for everyone involved.

-Mayer Dallal

Rent or Buy?

Those who are currently renting may want to stay a renter in this economy. Naturally, I promote homeownership, and there are so many benefits to owning a home, but in these tough economic times it may be hard to convince someone to buy over renting. Many are taking a look around and feeling comfortable right where they are.


On one side, when you own your home you will have more privacy, it’s yours, and dealing with neighbors is a little different. When you live in an apartment they are right next to you, but when living in a house they are a little further away. Renting a house is not so bad, but you are still putting up money every month for something that you will never own. There are some property owners that offer rent to own agreements with offering the money you pay into the rental as down payment towards the purchase of the home. However, just be careful that you read the fine print. These agreements can have huge loopholes and ultimately don’t put as much toward the down payment as you think.

Owning a home is still the American dream, but the challenge now is that the dream seems like it’s harder to achieve. The second half to this issue is that rents are getting higher, and making mortgage payments look cheaper. With home prices falling, there is no doubt that you can get more house for the money, but do make sure that in the bigger picture with maintenance and utilities that it will still work with your budget.

-Mayer Dallal