Rent vs Buy in 92078>Question Details

Amanda Joy B…, Home Owner in San Diego, CA

Why do so many renters not buy already?

Asked by Amanda Joy Barba, San Diego, CA Wed Mar 13, 2013

Is it because they are scared of being turned down for a mortgage? Is it because they haven't found a place to settle down? Is it because of the doom and gloom news stating how bad the economy is? What's your take on it?

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Answers

7
Christina Hayes’ answer
Truthfully, the answer is simple. They can't qualify for a mortgage or don't have the funds necessary, or both. At the end of the day everyone has to pay for housing, regardless if your name is on the deed or not. We deal with so many clients who dream of owning a home but don't realize the choices they make only push that dream further and further away. Educating people is the first step, and then helping them understand the process...

Have a great weekend.

Christina Solorzano;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit
Ex-Mortgage Broker of more than 10 years
http://www.everlastingcredit.com
0 votes Thank Flag Link Sat May 4, 2013
Maybe they simply don't want the responsibility of owning a house....or..........they can't qualify/afford it ....or.......... they like to move around, and their future plans are uncertain................or, they live in a big city like NYC, where 1-2 bedroom apartments in Manhattan can sell for well over 1 million dollars!

You'd be surprised that many people live in NYC (and other expensive large cities) and will never own a home due to the cost...........................it's a big country out there - not everyone has the same needs or wants.

Pick a reason - there are many of them.
0 votes Thank Flag Link Sat May 4, 2013
Everyone is different. But here are some of the top reasons I hear:

1) Scared
2) Not enough time to find a home
3) What they want and can afford are very different (not willing to take steps)
4) Credit issues
5) Down payment and don't qualify for a low down loan (FHA, VA)

There are more - but these are the most common I hear.

David Rudd
Kindred Real Estate

david@kindredre.com

CA DRE # 01402946
0 votes Thank Flag Link Sat May 4, 2013
Home purchase is not for everyone. Even though, borrowers can get a 30yr mortgage but if they have to put down another $5000, they simply don't have the cash. With many investors come into the market and flip a property into a turn key, there are just too many options at a still low rent rate (even though rent is on a small increase). It is more desirable to rent and be worry free of all the expenses which an owner takes on. And that's just one of the factors! So, we as Realtor just work around this to help our clients.
0 votes Thank Flag Link Wed Mar 13, 2013
It is because they do not have enough down payment, recent foreclosure/short sale, not enough home available in the market or they do not have guidance about different type of loan/ mortgage (such as FHA...)
0 votes Thank Flag Link Wed Mar 13, 2013
We've been marketing in high end apartment complexes in Palo Alto (rents $3000+ for 2 bedrooms) as one subset of the renter population. Aside from students and renters on short term job assignments, renters that won't buy seem to be hit by sticker shock when they start looking. I just checked the MLS, the lowest listed property in Palo Alto that is not in escrow is listed at $795k (includes single family homes and condos). The general sense I get is that although employment is way up in Silicon Valley, the high cost of rent, gas, etc. is making it hard for potential buyers to save for a down payment.
0 votes Thank Flag Link Wed Mar 13, 2013
I speak for myself that while I live in the most expensive city in the US to rent, I haven't bought yet because I don't know what my life will look like in the next five years! I predict that I will get married and have a family, but I am not ready to commit to something so permanent at this point in my life. Hope that sheds some light.

Great question!

Ali, Community manager
0 votes Thank Flag Link Wed Mar 13, 2013
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