With rent actually being more expensive than mortgages right now, many renters are realizing they really can afford to buy a home, since they are already making a monthly payment.
80% of non-home owners are willing to give up certain luxuries in their life so that they can purchase their dream home, according to Century 21’s Spring Home Buyer/Seller Survey.
So what are they willing to sacrifice in order to save for purchasing their dream home? The survey finds:
- 50% would cut back on dining out.
- 49% would trim their shopping for non-essential items, such as clothing, gadgets, and accessories.
- 47% would give up luxuries, such as expensive cable packages and trips to the salon.
- 39% would cut back on vacations.
- 10% would contribute less to their 401(k).
Why are these non-home owners so willing to make such sacrifices now? The survey finds that record-low mortgage rates and appealing home prices are making them want to act faster toward home ownership.
“For those who are currently renting, purchasing a home is especially attractive right now,” says Rick Davidson, president and CEO of Century 21 Real Estate LLC. "In fact, home affordability reached a new all-time high for the first quarter of 2012.”
So while renters are ready to sacrifice to get on the road to home ownership, many express concern that despite their sacrifices they’ll still struggle to get there. Forty-five percent of renters say they will likely be forced to wait to own a home because they cannot qualify for a mortgage or don’t have sufficient funds for a down payment, according to the Century 21 survey.
Source: Century 21 Real Estate