Advice for Millennial Home Buyers
In previous generations, many people bought ‘starter’ homes while in their 20s or 30s. The world moved at a much slower pace then. People tended to stay put in the cities where they grew up. They wanted ‘roots’ and the status that homeownership afforded.
But times have definitely changed. In the next generation of real estate, we’re a much more mobile society. Millennials, Generations X and Y don’t necessarily want to be tied down by roots. They want the freedom to travel, or to take that new job, whether it’s in Chicago, Los Angeles, or Dubai. Homeownership doesn’t have the same status to them that it had to earlier generations. And, they’ve heard the horror stories of home ownership from those who bought during the market high only to see their home values plummet during the recession.
But there are still many who want to be homeowners. And, the approach is different now, then it may have been a generation ago. If you’re in your 20s or 30s today and considering buying a home vs. renting, here are some things to consider.
Don’t assume you can’t afford to buy
So many young people come out of college with student debt and very little savings. Even after a few years out of college, they assume they either don’t have the 20 percent down payment or don’t have the income to afford a purchase.
Don’t go it alone
With today’s easy access to online listings, most people old and young believe you don’t need a real estate agent. People assume that the role of the agent, pre-Internet, was primarily providing access to the “keys.” In reality, agents have always played such a bigger role, one that many people don’t realize until they’ve gone through a transaction. A good local agent has years of intellectual capital inside his or her head.
Take your time
Buying a home is not like buying a new smart phone, computer or flat-screen TV. It’s not only a lot more expensive, it’s much more personal and emotional and not something to take lightly.
Don’t be overwhelmed by data
When your parents bought a home, there was probably little to no data available to them. They worked with a real estate agent who showed them homes, but they didn’t have access to so much historic data or access to the technology and information we have today.
Even so, access to all this information isn’t always a positive force. Sometimes, it can stall a buyer or make them question whether or not they want to be a buyer. If you have a down payment saved up, can afford the monthly payment and plan to commit to the home for at least 5-7 years, then go for it.