Many Millennials (general age range of 18- to 34-year-olds) these days cannot afford to a buy a house right now, but they would like to do so at some point in the future. Renting can be just as expensive as buying in some markets. The large culprits holding many young adults from buying houses are slow wage growth and student loan debt.
As your Melbourne, Florida real estate agency, we wanted to share some tips for Millennials interested in home purchase:
Millennials with the goal of homeownership should set a specific goal: decide what kind of residence, what dollar figure you’re looking for, and how much money you could put into a down payment. Having concrete numbers helps you budget, invest, and possibly seek out a financial advisor.
But responsible, credit-worthy Millennials shouldn’t automatically assume they don’t have the income to afford a purchase or the 20% for the down payment. Bankers, direct lenders, and mortgage brokers are lending more than ever these days, and loan options (from the Federal Housing Authority, for example) assist first-time buyers who qualify to buy with as low as 5% down.
Those Millennials who do have the funds for a down payment, can afford the monthly payment, and plan to stay in the home for a minimum of five to seven years are in the best position because they can begin the house search in earnest if they wish. But they should also take their time. Don’t be pressured into making quick decisions, overwhelmed by too much data, or find yourself experiencing the pain of “buyer’s remorse.”
When seeking a house, Millennials should keep in mind that dispensing with using a real estate agent is not in their best interests. Trustworthy agents, like those at Real Estate Ink, know the market, have toured hundreds of homes, and know what needs to be done when red flags pop up.
Younger potential buyers should also consider talking to people who have bought homes before, such as their parents. Yes, they faced different economic climates at the time they bought their house, but they have been through the market before and can add valuable feedback.
At Real Estate Ink, we offer full service property solutions including sales and leasing representation, Melbourne FL property management, project development, and short-term rental services.