What renters are willing to sacrifice for a home

Eighty percent of non-homeowners are willing to give up certain luxuries in their life so that they can purchase a home, according to Century 21’s Spring Home Buyer/Seller Survey. So what are they willing to sacrifice in order to save for the purchase?

The survey found:

• 50 percent would cut back on dining out.
• 49 percent would trim their shopping for non-essential items, such as clothing, gadgets, and accessories.
• 47 percent would give up luxuries, such as expensive cable packages and trips to the salon.
• 39 percent would cut back on vacations.
• 10 percent would contribute less to their 401(k).

Why are these non-homeowners so willing to make such sacrifices now? The survey revealed record-low mortgage rates and appealing home prices are making them want to act faster toward home ownership.

“For those who are currently renting, purchasing a home is especially attractive right now,” said Rick Davidson, president and CEO of Century 21 Real Estate LLC. “In fact, home affordability reached a new all-time high for the first quarter of 2012.

While renters are ready to sacrifice, many express concern that they’ll still struggle to get there. Forty-five percent of renters say they will likely be forced to wait to own a home because they cannot qualify for a mortgage or don’t have sufficient funds for a down payment, according to the Century 21 survey.