A low percentage of homeowners opting to pay a downpayment is evident in the latest Freddie Mac Online Survey according to World Property Journal. And only 39% of the online takers think that a down payment is a vital part of their savings.
In accordance to this, it was reported that many of the American families stress importance on saving for an emergency/unexpected expense which reached 59% on the survey. Meanwhile other priorities are centered on retirement 51% and with their children's education 50%.
Apart from these, debts are also seen as the reason why a down payment is not considered for savings. Some are reportedly still has not addressed solutions to cope up with their debt fees.
"We know rents are rising faster than incomes and now we have data to show that many renters don't have enough to pay all their debts each month, which is forcing them to make tradeoffs, such as cutting spending on other items," said Freddie Mac EVP David Brickman of Multifamily from World Property Journal. "Despite this, some renters feel optimistic about managing their debt."
Brickman also added that, "Growth in the renter segment will most likely occur through multifamily properties as more than half of those currently renting single-family properties are planning to become homeowners in the near future. The data shows single-family renters are increasingly more dissatisfied than multifamily renters."
Meanwhile, some renters are trying to stretch out their budget and limit some spending to cope up with the expense that debt brings. It was also included that 51% of people who are in debt try to minimize spending with essentials while 52% are delaying hopes of purchasing their own homes. Some 35% address the problem by looking for a roommate to share the home rental fees with.
Although the struggle for getting an owned home is seen. The article also mentioned that Millennials are noted to be saving money for long-term and even short term use. It was cited that they could have a potential to "buy a new home in three years time" just like the Boomers.
