As reported in REALTOR® Magazine, at today’s rate of saving, it takes an average 12.5 years to save for the typical down payment of 20% on a home purchase. This information fits nicely with a study done by the National Association of REALTORS® stating that first time home buyers are at the lowest level in decades. I think that anyone would find it a daunting task to try to save $50K for a down payment. I suppose this means good news for us real estate investors who can offer quality properties for rent to persons who are qualified to make mortgage payments but unable to scoop together the cash for the down payment.

My advice to renters would be to buy what you can afford now with cash in hand for the down payment, let appreciation work for you, then buy a larger home in a few years. It works all the time.