U.S. Homeownership Aspirations Aren't Dead-Owning a Home Remains Defining Element of American Dream
As the country continues to emerge from the turbulent mortgage
period, a Homebuyer Poll released by TD Bank reveals aspirations of
homeownership are still very much alive in the U.S. The majority
(84 percent) of today's younger renting generation (ages 18-34)
responded that they intend to buy a home. Overall, more than half
of consumers polled say homeownership is a vital component to
defining the American Dream and 59 percent associated feelings of
excitement or pride as part of their first time home buying
TD Bank surveyed more than 1,300 consumers across the U.S. to better understand the perceptions and attitudes surrounding home ownership, specifically examining the attitudes of current renters and prospective home owners, as well as past and present home owners.
Owning the American Dream
The majority of current home owners surveyed report purchasing their first home early in life with 4 out of 5 buying between ages 18-34. Close to two-thirds of those polled continue to be homeowners. The poll also found that first time homebuyers are more likely to cite achieving the American Dream as a primary motivation for purchasing their first home.
"There's no denying buying a home is a pivotal point in a person's life. Our survey tells us that people are looking to buy homes, and attitudes towards homeownership have continued to remain positive over the years," says Michael Copley, Executive Vice President, Retail Lending, TD Bank. "TD Bank remains committed to helping keep the American Dream alive by giving customers the hassle-free tools to borrow smarter and make this dream a reality."
Of those who intend to own, the American Dream (18 percent) is considered as important or more than other motivations for buying a home, such as:
• Good opportunity (17 percent)
• An evolving family (11 percent)
• Being financially ready (10 percent)
The survey revealed that plans to own a home tracked similarly across genders, with 66 percent of female respondents planning to own a home compared to 57 percent of men.
Financing Your First Home
"With more than half of homeowners surveyed stating getting a mortgage and making a down payment is the preferred method of payment, choosing a lender remains a vital step in the home buying process," continues Copley.
Other Key Findings From The Survey Include:
• Three out of 10 homeowners consider their house their dream home.
• While younger homeowners are more stressed (20 percent) compared to older homeowners when asked to look back on their first home, older homeowners were more proud (51 percent), more confident (20 percent) and far less stressed (9 percent).
• Seventy-eight percent of respondents said that they plan to stay in their current home.
• Staying within budget (43 percent) is a top consideration when buying a home among those who intend to buy.
TD Bank developed the First Time Homebuyer Kit to create a rewarding home-buying experience. Available on the TD Bank website (www.tdbank.com/firsthome) as well as in stores, the kit is designed to take the customer through the process of purchasing a home, providing advice and information needed to choose the house and mortgage to best suit individual needs.
Some things to consider when buying your first home are:
• Determine how much you can afford: By looking at your income and current monthly debts you can determine what you can afford.
• Buying a home isn't for everyone: Know the benefits of owning vs. renting before making any decisions. Also stop to think about what type of home you can afford and which style suits your lifestyle such as single-family homes, townhouses or fixer-uppers.
• Narrow the focus of your search: Many factors impact the ideal type of house for each buyer, including desired features and benefits, life stage and how many improvements you are willing to make before moving in.
• Make the mortgage process as hassle-free as possible: From fixed-rate to adjustable -rate, there are several options to fit your needs.