Common Setbacks The Younger Generation Might Face When They Are Buying a Home

It can often be difficult for Millennials to find the right housing because of several factors. This is especially hard for those who are recent college graduates. The majority of them move back in with their parents upon graduation in order to give themselves time to save up enough money, as well as look for that first job.

 

There are also many financial advantages that come with owning a home. The article, Advantages of Homeownership, from Discover, provides a detailed breakdown of these benefits. The most important benefit is that it is a good investment. Additionally, if you remain in your home for an extended number of years, the value of your home will likely increase. This will be beneficial when it comes time to sell your property.

 

It is very common that people who graduate from college, often have a great deal of debt as a result of their student loans. Most of the time, the loan companies will allow students a six-month grace period before they have to begin paying back their loans.

 

There are a number of reasons why the younger generation are not able to buy a home:

  • Affordability

  • Student debt

  • Higher home loan costs

  • Not enough money to put a down payment on a house or just not able to save enough money

 

One particular article, The Real Reasons Millennials Aren’t Buying Homes, from Investopedia, lays out several reasons why Millennials are not purchasing homes. It provides explanations from the affordability gap and how new home buyers are less willing to relocate to their place of employment. There is also the case of how one-third of those who are buying homes are not married. People who are getting married later, as well as having children later increased the number of Millennials living with relatives in 2018. “The longer this age group lives with parents or independently, the more homeownership will be delayed,” stated Bank of America.

 

Buying your first home is a very big decision. There are multiple steps to the process of finding good housing and several Apps such as JOVE that can be used to assist in this process. There are a number of ways in which Millennials can be sure that they will be able to afford their dream home:

  • Live with their parents for a short while

  • Put aside a certain amount of money each month

  • Build good credit & put a certain amount of money into savings

  • Be sure to pay bills on time

 

Another important component to buying your first home is being able to build a budget. There are a number of different tools that individuals can use to plan out how they will purchase and have the funding for a new house. In the article, The 7 Best Budget Apps for 2020, from Nerdwallet, goes into detail about several useful smartphone apps that can assist with budgeting:

 

In conclusion, many people often face difficulties and roadbooks while they are going through the process of finding their first home. It is extremely important to go through the process with an open mind. When the time comes to put in an offer on your first home, it is imperative to really think it over, and review it with your agent to make sure that you are satisfied. Additionally, it is very important to utilize any and all available resources during this process. Taking these steps will likely help the process run much smoother.

Leave a Reply

Your email address will not be published. Required fields are marked *

Post comment