Survey reveals top motivators for home ownership include increasing rents and the desire to build equity.
CHERRY HILL, N.J., Oct. 21, 2015 — TD Bank, America’s Most Convenient Bank®, today released data from its inaugural TD Bank Renter Survey which found that Hispanics (42 percent) are more likely to purchase a home within the next two years compared to the general market (31 percent). Hispanics cited rising rents (47 percent) and wanting to build equity as top motivators for home ownership (40 percent).
The TD Bank Renter Survey was generated from a nationwide poll of more than 1,000 renters including 140 Hispanics, asking how they feel about homeownership, what concerns might be keeping them out of the housing market and what factors are motivating them to consider home purchases.
“We can see from the data that a majority of Hispanics, over 70 percent, are more likely to value home ownership compared to just 59 percent of the general market,” said Scott Haymore, Head of Pricing and Secondary Markets, TD Bank. “For this reason, and as rents continue to rise for many Hispanics, it’s key for lenders to educate potential home buyers about financing options that make home ownership affordable.”
Home Ownership Great Alternative to Rising Rents
Hispanics (17 percent) were more likely than the general market (10 percent) to see their rents increase between $100 and $150 within the last two years, bringing the average rent increase to $291 per person.
Hispanics will eventually reach a rent threshold before making the switch to home ownership. The survey results found that Hispanics are willing to pay a maximum of $1,285 in monthly rent before deciding that it makes more financial sense to purchase a home; higher than that of the general market ($1,118).
Hispanics Saving for the Switch to Home Ownership
As the rent threshold for Hispanics approaches, the data also indicates that they are financially preparing to make the switch to home ownership. Hispanics are more likely than the general market to have saved between $25,000 and $50,000 towards a future home purchase (27 percent compared with 15 percent).
Even so, the thought of home ownership does not come without concerns for Hispanics, with more of them (61 percent) citing money as an obstacle compared with the general market (51 percent). Of the 81 percent of Hispanics most concerned with the affordability of owning a home, their top three fears include:
Home maintenance costs – 51 percent
Monthly mortgage payments – 49 percent
Utilities / bills – 35 percent
“Hispanics should work with a trusted mortgage professional who can guide them through the home buying process, and help dispel the fears that many Hispanics have when it comes to owning a home,” Scott Haymore, Head of Pricing and Secondary Markets said. “In today’s market, buyers can leverage state and government affordability programs, which offer options outside of the standard 20 percent down payment, allowing them to pursue home ownership, build equity, and feel comfortable with their monthly payment.”
Survey Methodology: The study was conducted among a nationally representative group of consumers from September 23 through September 30, 2015. The sample size of 1,046 consumers has a margin of error of+/- 3.0 percent. The survey was hosted by global research company Vision Critical.
About Vision Critical: Vision Critical provides a cloud-based customer intelligence platform that helps companies build engaged, secure communities of customers they can use continuously, across the enterprise, for ongoing, real-time feedback and insight.
TD Bank, is one of the 10 largest banks in the U.S., providing more than 8 million customers with a full range of retail, small business and commercial banking products and services at approximately 1,300 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida.
/PRNewswire/
