Millennials have a notoriously difficult time getting on the property ladder. So much so that many millennials abandon hope of buying their own home altogether and settle for a lifetime of renting. But is this a smart move? Why should millennials look to buying a home?
To buy or not to buy?
Renting a home comes with a few perks:
- It makes it easy to live a nomadic lifestyle; moving from place to place.
- Repairs and maintenance are usually the responsibility of the landlord.
- There’s no big down payment to make.
BUT buying your own home has some even BIGGER benefits:
- Buying is an investment.
- Your mortgage payments build equity.
- Buying your own home gives you stability.
- You can do what you want with the property.
- Renovations you make increase the value of your home.
- Mortgage payments are often cheaper than paying rent.
For millennials looking to settle down and enjoy greater financial security, buying a home is a fantastic option.
Millennials (people born between 1981 and 1996, currently aged 25 to 40) are now the largest generation in the US, having overtaken baby boomers in 2019.
Misconceptions about millennials
Millennials get a bad rap for being lazy, carefree and hedonistic — hardly the type to settle down. In reality, this stereotype couldn’t be further from the truth; millennials make up the biggest proportion of first-time buyers and account for almost a third of the US housing market!
It is much harder for millennials to get on the property ladder than it was for their parents’ generation. There are many reasons it takes millennials longer to buy their first home — from student debt to high rents to starting a family later in life. Homeownership has seen a generation-on-generation decline, yet millennials could be the demographic to buck this trend.
See the top five millennial real estate trends here.
What do I need to know before I buy?
Buying your first home can be daunting — there’s all the mortgage terminology to get to grips with, a down payment to save for, and it’s a considerable commitment.
But it’s possible to overcome all these hurdles with a little help from iLENDi.
Check out our guide for first-time home buyers.
And some videos to help you understand home buying basics.
Make a move in 2021!
With mortgage rates low, now is an attractive time to buy. Throughout the pandemic, you probably also saved money on your commute, takeout coffees, lunches, vacations and days out — savings which could put you closer to a down payment.
How much will a down payment cost?
Depending on the loan type and your lender, the required down payment on your first home can be as little as 2.25% or as much as 20%. Check out our down payment strategy post.
- Start saving for your down payment ASAP.
- Work on boosting your credit score.
- Look for homes in lower-priced areas.
- Consider homes that need a little TLC — outdated decor is simple to fix, but pulls home valuations down.
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