Inman news recently published an article titled “Fear and finance in real estate,” which raises the concern of renters/buyers and the fear of becoming potential homeowners. If homes are cheaper than ever (not really true) and we have several market reports by many established economists/researchers/etc., that now is the time to buy, then why aren’t we buying?
Below are a few article snippets on those fears, do you agree?
A study published this week by Yahoo! Real Estate took a deep dive inside the minds of renters and owners to get to the bottom of this puzzling truth. Fifty-nine percent of the renters surveyed said they would prefer to own their homes.
So, what on earth is stopping them? The answers were loud and clear: fear and finance, and in these renters’ minds the twain definitely do meet.”
At least one-quarter of the renters and owners in the market identified one or more of the following as their primary fears about buying a home:
- worry about mortgage payments rising (25 percent);
- concern that their credit is not good enough (25 percent); and
- the fear that property taxes will rise (28 percent).
A full 30 percent of the owners and renters who self-identified as interested in buying a home expressed concerns that they might not be able to scrape up enough cash for a down payment.
And the No. 1 concern was arguably the one that is the most contradicted by the facts of the current market climate: 36 percent of buyers were fearful about the cost of owning a home.”
To read the full article, click here.