One-Fourth Of Renters Say They Will Never Buy A Home

Discussion in 'Economics' started by S2007S, Aug 19, 2010.

  1. S2007S


    Thats a pretty significant number!!!!

    One-Fourth Of Renters Say They Will Never Buy A Home
    Published: Thursday, 19 Aug 2010 | 10:35 AM ET
    Text Size
    By: Reuters

    More than a quarter of Americans currently renting houses and apartments have no intention to ever buy a home, according to a survey published on Wednesday.

    Twenty-seven percent of renters say they do not plan to ever buy a home, according to a new survey.
    The survey, by real estate search site, found 27 percent of renters do not plan to ever buy a home. Although 72 percent still expect to buy eventually, that proportion is down from 77 percent six months ago.

    Of those who do hope to become homeowners, two-thirds say they will wait two years or more.

    This reluctance to buy could drag out the real estate market's slump longer than many have predicted, Trulia said.

    "Renters converting into buyers are crucial to turning around the housing slump, but the current economic crisis is causing people to become very hesitant to get off the fence and buy a home," said Trulia Chief Executive Officer Pete Flint. (Also read: More Homeowners Expect Home Values to Fall More)

    The Housing Fix -- A CNBC Special Report >> See Complete Coverage
    Among the factors affecting sentiment: Renters are unable to save for a down payment, or they are waiting to get a new job or for mortgage rates to go even lower.

    U.S. home loan rates are the lowest since record-keeping began in 1971. The average 30-year rate fell to 4.44 percent in the week ended Aug. 12, according to loan company Freddie Mac. U.S. mortgage applications leaped last week as the rock-bottom rates lifted demand for home refinancing loans to its highest level in 15 months, the Mortgage Bankers Association said on Wednesday.

    Trulia's online survey of about 2,000 Americans was conducted by Harris Interactive in late July.
  2. With this new "Mobile" workplace where employees have to find new work and move every so often, home ownership no longer makes sense. The slippage and issues with buying and selling a home is not worth it.

    The days of people having a job at IBM for 30 years + pension is over.
  3. And when the Health Care laws take effect, no more Health Ins. bennies either.
  4. All the better for the values of my rental properties I guess!

    I wonder how many people aren't even aware they might be able to take low interest 401K loans for 10 years for down payment?

    As far as interest rates go, at some point, there isn't much difference as rates continue to fall.

    Yeah, much better to leave your apartment complex or rental home after paying $1000/month rent for 20 years with nothing to show for it and not having gotten the tax breaks. ($12,000/yr for 20 yrs is $360,000 btw)

  5. won't buy or won't be able to afford to buy?
  6. In my neighborhood, property taxes, condo fees, insurance, upkeep, etc. etc., gets you 5/8's of the way to rent in an equivalent apartment. These extras are like a rent payment.

    That also doesn't count interest payments on a mortgage. You only save a portion of the interest payment through reduced taxes, not all of the interest payments.

    And what if you're laid off, or have a trading loss for the year? You then have no interest deduction.
  7. Hmm. I don't think this part is correct - you can only write off $3,000 in trading losses in a year, right? You can have much more write off with the interest deduction.

    In other words, hypothetical person makes $80K - 22K taxes off their pay - lost $5,000 in stocks - paid $15K in interest on home.

    Their taxable income is $80-3-15=$62K. Of course other deductions could be included as well.

    Unless I'm not understanding something correctly.

  8. Bob111


    deduction my ass...

    and brother Barry is going to cut even further whatever is left..
    it's an illusion....american dream it is...i own the house..paid cash...fuck this mortgage bullshit..if my house price split in half-i will lose 150K. hurts,but not lethal..if you own 200K mortgage on that shit hole which now worth 150K and you already paid 15-50K in interest-then you are in really deep shit..btw-owning the house is nothing but non stop line of maintenance expenses..and i'm pretty fucking handy guy, who did pretty much everything by himself..and house is not too old..i'm neutral on rent vs own..just make sure you know what you are doing..
  9. S2007S


    I think the new norm is 3 years


    Those days are long, long, long gone.
  10. I am considering selling my house, but when I looked at rents they aren't much cheaper than my mortgage payment several hundred less per month to live in 1000sft vs 2500 with a nice view and backyard. I may sell and buy a distressed property or just downsize and pay cash for a house. I kid you not I looked at 2 bedroom apartment in nicer part of Denver metro and they are 1200-1500 a month for 1100 sf max, that's crazy IMO.
    #10     Aug 19, 2010