It’s just not your mom’s real estate market anymore! As the millennial generation gets older, many of the typical adult goals start lining up, demanding to be met. Finishing college, getting married, buying homes, and having children are just a few, but many young people are beginning to shy away from the idea of buying homes and settling down.
From the difficulties of finding a job to the ever-rising student debt, the idea of owning a home may feel impossible for the average millennial. However, it doesn’t have to be a pipe dream. With proper planning and the right mindset, many young people are finding opportunities to buy their first houses and begin lives for themselves.
Millennial’s tips for buying a home in this real estate market.
- Consider your finances. Many young people consider this to be a terrifying, adult concept, but it doesn’t have to be hard. Do you regularly pay insurance bills and student loans? What about the differences between your rent and a potential mortgage? It’s important to budget your expenses correctly, so be sure to consider every possibility before jumping into the home buyer pool. With a little research and some time, you can know your own credit backwards and forwards. Take a good look at your finances, and address any issues early. The more you know about yourself, the better you can plan and negotiate.
- Buying a home is a huge commitment, so be sure that you’re well-versed before you walk into any purchases. Read articles online, listen to podcasts, talk to real estate experts, and try downloading a few apps to help you with the process. Bookmark things to consider later, and try asking friends and family for advice. Many of your family members have probably experienced buying a home, and there’s no better person to ask than someone who has experienced it firsthand.
- Take advantage of anyone who will answer your questions, whether it’s a distant relative or a real estate agent. Separate opinion from fact, and fact-check everything you hear. The more prepared you are, the easier the home buying process will be in the long run.
- Don’t fall for the ‘renting is always cheaper’ myth. Long term renting is a quicksand trap that too many young people get sucked into. Don’t assume you can’t buy. Many studies show the price of renting is rising, versus the quickly declining interest rates. It’s becoming easier to buy, so keep your eyes peeled for opportunities to break the rent cycle.
Buying a home doesn’t have to be a terrible experience, and it doesn’t have to be something you only dream about at night. If you’ve found a place where you, a spouse, or an existing family would like to settle down, consider house listings for the area, talk to a real estate agent, and begin planning for the future. Buying a home as a millennial has never been easier, so take the leap and become a homeowner!