Among renters who plan to purchase a home in the future, 60 percent have increased their intent to do so compared to 12 months ago, according to the recent PulteGroup Home Index (PGHI) survey issued by national homebuilder PulteGroup, Inc. Among this same group, 61 percent stated they intend to purchase a home within the next two years.
Among the top reasons renters indicate they have increased their interest in buying a home include:
• They like being able to call themselves homeowners (49 percent)
• They view it as a good financial investment (44 percent)
• They need more space for their family/kids (36 percent)
The survey also revealed that deterrents – both real and perceived – still persist, preventing some renters from pursuing or achieving the dream of homeownership. The top three reasons indicated by current renters for not purchasing a home sooner include:
• Not enough money for down payment (54 percent)
• The belief that renting is cheaper than buying (28 percent)
• Uncertainty with employment status (23 percent)
PulteGroup also offers the following tips to renters considering purchasing a home:
• Compare owning vs. renting – Buying can be smarter than renting. Instead of your monthly payments padding your landlord’s pocket, they go towards owning your home. There are many advantages to homeownership, from tax benefits to more storage space.
• Get your finances in order – Line up your financing, start saving for a down payment and study available loan programs. By doing your homework, you will know exactly how much you can pay and what it will cost you.
• New vs. used – The PGHI survey showed that 63 percent of respondents will consider new construction when purchasing a home. If you want to choose the floor plan and customize a home to fit your family’s needs, this may also be the right choice for you. New homes can be up to 30 percent more energy efficient and often come with a builder warranty. If you’re handy and don’t mind a fixer upper home, there are a bounty of resale options.
• Select the right builder – Begin by selecting a builder who has experience in the type of home and location you want. Make sure they have a history of building quality homes and are financially stable. Lastly, take time to check their references and talk to past customers.