Thursday
October 2, 2014

Barriers to Home Ownership Vary by Age

|
-A A +A

Barriers to Home Ownership Vary by Age

Many Americans are still facing obstacles in buying a home. But depending on the age group, the biggest hurdle can be quite different, according to the Country Financial Security Index, which measures Americans’ sentiments on personal financial security. 

For example, members of Generation Y as well as those nearing retirement say saving for a down payment is their biggest barrier to achieving home ownership. However, those aged 30 to 39 say that having too much debt is their biggest hurdle. Those aged 40 to 49 say that job security is their biggest barrier. 

“The good news is that Americans are able to overcome many of these barriers to home ownership,” says Troy Frerichs, director of investments-wealth management at Country Financial. “By creating a smart financial plan and sticking to it, they can save up to pay down their debt and build their down payments, all while improving their credit scores and making themselves more attractive to mortgage lenders. The dream of owning your own home doesn’t have to be out of reach if you have a plan.”

The study also found that more than a quarter of home owners do not expect to pay off their mortgage by the time they turn 65. The age group closest to retirement age—50 to 64 years old—were the most likely to say in the survey that they would still be paying off their mortgage after age 65, at 37 percent. Meanwhile, 81 percent of Gen Y and 30 to 39 year olds say they plan to have their mortgage paid off by age 65.

—REALTOR® Magazine Daily News

Read more

Closing a New Generation Gap
60% of Single-Family Renters Plan to Buy Within 5 Years