Millennial Money Matters

Let's face it. Millennials get a bad rap. Check the headlines – the generation has been blamed for some ridiculous things. If you believe the Baby Boomers, Millennials are responsible for "killing" the paper napkin industry and "destroying" the fabric softener market.  The population of people born from the early 80's to the late 90's has been the brunt of a lot of criticism over the past few decades. And it's true that Millennials have done things a bit differently than previous generations. 

One of those differences is this: Millennials aren't as inclined as their parents to buy homes. In fact, a third of Millennials live with their parents, and over half the generation are renters. Is that because they're lazy? Or because they've "eradicated" the housing market?

Nope. Here's what you need to know about homebuying if you're a Millennial. 

Some Millennials are Nervous About Home Ownership

If you're a Millennial, you probably know someone who was affected by the housing crisis in 2007.  In short, many would-be homeowners were offered loans at great rates. These loans were offered to people who wouldn't otherwise be able to qualify for a home loan. A housing bubble was created... and it burst. 

Many Millennials witnessed that, and now believe that home ownership isn't a safe investment. That's a myth. The truth is that, if you pay attention to your contracts and mortgage terms, home ownership is a fantastic way to invest your money. In fact, for the most part property values go up on the whole, and your home is extremely unlikely to decrease in value. 

Millennials "Do Work" Differently Than Their Parents

Most Millennials are the kids of Baby Boomers, with a few exceptions. And Baby Boomers taught Millennials that there's a "right" way to do things. Graduate high school. Graduate college. Establish a career path. Get married. Buy a home. Have children. 

Millennials don't have the same types of jobs that Mom and Dad did. In fact, over a third of Millennials do freelance work, opting for the flexibility to work remotely, for anyone they choose. That choice creates a domino effect of other decisions: postpone having children, pay off student debt instead of saving for a down payment, and choosing to travel instead of settle into a home, for example. 

However, there's a good chance that you're going to buy a home... eventually. With that in mind, the time to buy is now. In fact, rental prices are rising as home ownership costs decrease. Consider buying a home now, and capitalize on your investment later.