4 tips to help turn renters into home owners
by. Tina Powers
Owning a home is still the American dream for most people. According to JP Morgan Chase survey published this spring, 87% of Americans found they dream about owning a home, 66% said they believe it is a good financial investment and 75% said it’s crucial to raising a family. Another recent survey, conducted by the National Association of REALTORS®, found that homeownership was equally popular with renters, as reported in RealtorMag.com. Even better, 68% of these renters said that now was a good time to buy a home.
This is encouraging news, given daily media reports about rising mortgage rates causing the number of mortgage applications to decrease.
How can your credit union increase its purchase mortgages by convincing renters that this is a good time to buy a house? Here are four tips:
- Point out the pluses. Building equity is just one. Owning a home has many advantages – and they’re not all financial. A stable environment, safety and security, and a closer relationship within the community are among the many benefits of homeownership.
- Show them the math. If someone plans to live in the area for a while, it’s often cheaper to buy a house than rent one. The length of time involved differs based upon rates, taxes and the home’s purchase price. A handy calculator, like this one featured in a New York Times article, can help determine whether purchasing or renting is the wisest financial decision.
- Host seminars or events. Participate in community functions or onsite events to reach people considering home ownership. You want them to think about your credit union as a trusted source of home buying information.