Is Fear Of Buying Fueling A Rental Craze?

 

A weak economy, youthful demographics and the foreclosure crisis are converging to fuel a significant and sustained uptick in rentals according to a recent report by Moody Analytics.  But could a fear of buying be the core reason why more Americans are choosing to rent instead of buying their own home?

A survey released by Integra Realty Resources reported 31 percent of respondents said a lack of a down payment was the main reason holding them back from making a purchase, 24 percent said it was the fear of making a bad investment, and 21 percent said the uncertainty of the economy was the main reason.

In addition, Dawson Realty manage individual and multi-family homes, and represent the owner in all matters regarding their property. This includes, but is not limited to, accounting, record-keeping, leasing, advertising and addressing other tenant needs.

With down payment requirements rising for some borrowers, many Americans are finding their dreams of homeownership delayed.  Of course, this is understandable, especially if the buyer is a first time homeowner and is unable to find down payment assistance. But sometimes the lack of a down payment is just an excuse hiding the real reason for delaying homeownership. Many people have watched the real estate problems over the past few years and fear that they will buy property only to watch its value decline even further. But basing their buying decision on this fear is a mistake due to the long-term nature of homeownership. Unless you’re looking to “flip” a foreclosure or REO, short-term shifts in value are often inconsequential.  Before purchasing a property, potential buyers should look at the value of the home over the past ten or more years. How has that value held up?  Even if there were recent declines in value, long-term gains are an indication that it may be a good investment.

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