What are you willing to do or sacrifice to own or maintain your home?
And how prepared are you in the event of a loss of income?
These questions were recently posed in a recent survey conducted by Genworth Financial Canada. The results are impressive for a 4 obvious reasons:
- The desire for home ownership, particularly among first- time buyers, remains very strong.
- So much so that people are willing to go and do without, put up with inconveniences, delay buying to save, put off other valued life goals and again buy modestly.
- Such behavior speaks to a back to the future new normal that mirrors values of a bygone era.
- People, too, will go to great lengths to protect and keep an asset as essential as their home.
Some of the findings when asked what people would be willing to do or sacrifice to own a home:
- 68% of renters said they would be willing to delay major purchases.
- 51% would be willing to give up vacations.
- 47% would buy a less expensive home further away from work.
- 45% would be willing to rent out part of their home.
- 41% said they would take on a second job.
- 39% would put off having children.
- 33% would keep living with or move back with their parents to save for a downpayment.
Findings of what homeowners would be willing to do if unable to keep up with mortgage payments:
- 82% of homeowners would be willing to give up vacations.
- 65% would take a second job.
- 57% would take on a 2nd mortgage or refinance.
- 44% would rent out part of their house.
In the event of an unexpected loss of income:
- Only 16% of Canadians feel very prepared.
- 49% feel somewhat prepared.
- 35% do not feel prepared at all if income were disrupted.
(Source: Genworth Financial Canada–First-Time Homebuyer’s Monitor, October 2009)