Are you a millennial working your way toward homeownership? This guide breaks down millennial housing trends and the tips you need to buy your first home.
Buying your first single-family home is a huge step in life.
Many millennials go through their early adult life thinking they'll never be able to own a home. With job prospects waning and the housing bubble growing over the last number of years, the thought of ever breaking out of the renting cycle is daunting for many. Homeownership remains a dream for too many people.
If you're really smart with money and live in the right market, you can work towards owning a home. Today, we're going to discuss millennial housing by giving you some tips on what to look for in a home and how to save up to get one.
1. Settling Your Budget
The first obstacle is coming up with the money to put a down payment on a house. Being able to put down a larger amount will mean lower mortgage payments and outright ownership sooner than later.
There are loads of ways to cut costs and save up for a single-family home. You can shave off most of your expenses or downsizing your apartment to pay less rent.
Another thing you should do before taking on a mortgage is to settle your current debts. You don't want to find yourself in a precarious financial position when multiple payments are due.
Come up with a realistic budget that you can stick to. Too many first-time homebuyers end up going over it to get their "perfect home" when they actually aren't ready for the financial burden.
2. How to Search
A lot of millennials try to take their house search online, in lieu of a realtor, because they don't want to pay for one. However, unless you've got some expertise of your own, hiring a real estate agent can be highly beneficial.
A good realtor that knows the area will better be able to find options that you wouldn't think of. They'll also be able to spot flaws that most people don't think about and they can help you do a lot of the legwork when it comes to negotiating transactions, inspections, and setting up showings.
There's no reason that you can't do these things yourself, but it's probably more time-consuming than you think.
It's always good to have a strong sense of what your needs are. In all likelihood, depending on your budget, you aren't going to be able to satisfy all of them. So, before you start searching, sit down and make a list to prioritize what you want out of this house.
You might be looking for a specific location, a great outdoor area, or the perfect kitchen, but have a sense of what order you value those things in. It will help you make the big decision when the time comes.
Millennial Housing Needs
Millennial housing needs are different than generations past. As young people start to see the value of property ownership, they see business opportunities. If you're a millennial searching for a single-family home to develop into a rental, visit us at Clockwork Property Management.
Clockwork is a 24/7 property management service that helps you with leasing, management, accounting, and inspections. Come back and visit our blog again to read more about property management and investing.