Most people agree that buying a home is a better long-term financial decision than renting. When you rent, you’re paying the mortgage for someone else and letting them gain all of the benefits. So, why doesn’t everyone own a house? The simple answer is that there are several very serious obstacles to homeownership that some people have a hard time overcoming.
Real estate industry experts tell us there are a few common obstacles to homeownership that make it difficult for Floridians to purchase a house. Thankfully, while it may be difficult- it is not impossible. Allow us to break down these challenges, as well as present solutions to overcome them.
It is common to need to provide a security deposit when you rent. In some places, you may need to show first and last month’s rent. The down payment required for buying a DeBary, FL house is much higher than this. According to a recent survey by Zillow, the number one factor that renters say is preventing them from achieving their dream of homeownership is the inability to save for a large down payment. Over two-thirds of people told Zillow that a down payment is their biggest impediment when it comes to becoming a homeowner.
Why can’t they save up a down payment? Why do they need to save so much? Answering these questions brings us to the solution to this obstacle. For one, homeownership is something you need to make a priority. Save money each month, as much as you can.
Then, find the right loan for you. Traditional loans require you to put 20% down, but not all do. Explore options such as Federal Housing Administration (FHA) loans, which only require 3% down. There are also options specifically for veterans and other special groups.
You’re not going to buy a house with cash, more than likely. You need a loan and in order to get one, you must prove you can pay it back. This is where your debt-to-income ratio becomes very important.
We know it’s easier said than done when paying off debts and saving money! There are many pathways to homeownership, but nearly all of them require patience. Pay off your debt as much as possible, as quickly as possible. This isn’t going to happen overnight, but it will happen eventually.
The past year or so has seen a big jump in the price of DeBary, FL homes. For some potential buyers, the house they want and need is simply out of reach at this point.
You have a few options here. The best option may be to simply wait a year or so. If the market is too out of reach for your current financial situation, then it’s probably a good idea to wait and keep shopping. Homeownership is about stability. Buying a house shouldn’t be treated as a risky investment like bitcoin or the stock market. Don’t risk buying an overpriced property you can’t truly afford in the hope you’re able to figure it out down the line.
That’s not to say anything and everything is overpriced. Savvy home shoppers are still able to find houses in good neighborhoods with all the amenities they are looking for, for a price they can afford. Will this be the first house that catches your eye? Probably not. Is it out there? Yes! For instance, you may consider buying a townhouse rather than a single-family home, as these are typically less expensive.
A full 76% of renters said they would rather own a home and only 2% of homeowners would rather rent. Clearly, people who are renting want to own their own home instead. The reason they cannot do so is probably related to one of the obstacles to homeownership listed above. If you feel these obstacles are holding you back, we encourage you to take your time, speak to an expert, and consider the homes in Rivington. We work hard to ensure living in our neighborhood is what’s best for your long-term financial success as well as your happiness. You can feel confident that the investment to live in our neighborhood is one that will pay off!