Rent, Insurance, Cars, and Loans, Expected to go up by 2016
2015 has been a roller coaster ride for everyone. There were ups and downs that almost drove everyone to the wall. However, if you were like me who is actually looking forward to 2016 just because the year of the sheep has not been cooperating well. Anyway, I would like to share this article I found online that may or may not put us to a panic mode.
This article can give us more insights on what to expect next year and prioritize the plans that we have placed on hold this year. If you are renting, this might be the best time to actually own your house and stop renting before interests go up and the loan process harder.
Here's a look at what could cost more in 2016.
Residential and commercial property rental costs could rise in 2016, and not just in red-hot residential markets like San Francisco and New York. Michael Levin, associate professor of marketing at Otterbein University in Westerville, Ohio, says residential rental markets that have not been hot for the past several years, such as Cincinnati and Dallas, could see rising rents. "Demand is finally catching up with supply, and it's squeezing the available supply, so residential rents will increase," Levin says.
The Zillow Home Price Expectations Survey, which surveyed 101 real estate experts in January, found that more than half of the experts said they expect rental affordability to worsen for at least another two years.
2. Borrowing money.
Mortgage rates sat at historic lows the past few years, which was favorable for those looking to refinance or finance a new home. The U.S. Federal Reserve did not raise interest rates in 2015 as expected, but it could increase rates later this month or next year. If that happens, homeowners with home equity loans will pay more, as will people taking out new mortgages, points out Chip Manning, director of the Babson Center for Global Commerce at Sewanee–University of the South. "I think you'll see upward pressure [on housing prices] because of the fact that people will try to get in under the wire [before rates increase]," he says.
3. High-tech home appliances.
Home appliances are going high tech, and more bells and whistles often translates to higher prices. "More products have home automation, app inclusion and voice inclusion," says Howard Schaffer, vice president of merchandising at Offers.com. "It's everything from high-end appliances down to your light switches, light bulbs and even crockpots." However, if you're in the market for a basic model that doesn't sync with your phone or offer other features, then you likely won't notice much of a price increase over this year, according to Schaffer.
4. College costs.
The College Board reports that the cost of undergraduate tuition at public and private universities for out-of-state students rose more than 3 percent between the 2014 to 2015 and 2015 to 2016 school years. Despite talk on the presidential campaign trail about plans to rein in college costs, Manning says there's an "arms race" in the college space. "They're still building nice facilities, and a lot of the colleges are doing more in the area of research, which can impact the cost structure," he says.
MOOCs (massive open online courses) and online schools have been hot topics over the past seven or eight years because of their potential to drastically reduce college costs, Manning adds. "It just hasn't materialized [on a large scale]," he says. "I think it will eventually have an effect, but I don't think we'll see that in the foreseeable future."