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 b/c, 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 and 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 a great 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).
RENTER SURVEY IN REALTOR MAGAZINE
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 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.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167