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.
Millennials Have Re-Prioritized the Down Payment
There are definitely some upfront costs associated with buying a home. Down payments, insurance and closing costs are just a few of these. And, as mentioned, college grads may be more concerned with student loan debt (it averages over $37,000 for a 2016 grad) than with saving for a home.
But many Millennials don't realize that there are options available to get into a home with minimal upfront costs. Government backed mortgages often offer loans with low to no down payment. And even staying on top of your credit score will help you get a favorable loan with a private lender – your down payment can be decreased considerably if you've got good credit. If you're a Millennial who's a little apprehensive about buying a new home, let's chat. Whether you've got a non-traditional job, aren't sure if home buying is the right choice for you, or you have less than perfect credit, we can talk about the options available to you. Now is a great time to buy! With lower housing costs and a shift in the economy that's favorable to Millennials, there's no better time than now to start the search for your new home. Call or Text me today: (757)206-2859