FIXED HOUSING PAYMENT IS NOT THE BIGGEST INCENTIVE TO BUY
In August, I blogged about Rent Vs. Buy Comparisons In the Age of Inflation, pointing out how comforting it is to buy a home and lock in a fixed housing payment when rents have been climbing as much as 30% per year in some markets.
I mistakenly believed that would probably be the biggest incentive for renters to buy a home.
I was wrong.
BUILDING WEALTH IS ALSO NOT A MAJOR INCENTIVE
Another huge incentive we frequently tout in marketing materials is the ability to build wealth by buying a home. According to a Federal Reserve study cited in this Keeping Current Matters column, homeowners have a 40x greater net worth on average than renters.
#1 REASON TO BUY: “Flexibility to do what you want with the space.”
All I want in a home is enough space to put my feet up to read the WSJ, sip coffee, and maybe to install a pull-up bar.
Apparently though, I am unique, as most people’s #1 desire in a home is the flexibility to do what they want with their space.
Our Marketing Director is an excellent example of this, as she is an extremely artistic recent homebuyer who is treating her entire home as one giant canvas for her non-stop creativity.
It is both amusing and, no doubt, exhausting for her significant other. 😊
I might add that this is the same Marketing Director who blogged about her “Homebuying Hell” in May (still a great read).
Here are the top 5 reasons renters want to buy: (1) Flexibility to do what they want; (2) Stability; (3) Pride of homeownership; (4) Homes increase in value; and (5) No rules against pets.
#1 REASON RENTERS DON’T BUY HOMES?
The survey also listed the reasons why renters don’t buy homes, and the #1 reason was: can’t afford a down payment.
That, of course, opens up even more opportunities to illuminate the many options there are for such renters, including 0% down VA and USDA loans; 3.5% down FHA loans; gifts; down payment assistance programs; and large closing cost credits.
Questions? We are happy to discuss the above down payment options more in-depth with anyone thinking about buying a home – you can get in touch with us here.
