As we enter August 2017, most of us still have a very positive outlook for the time ahead this year. Obviously that can always change as the year goes by. Many of the people with this positive outlook should be the Generation Y or the “Millennials”. Why do you ask? You are the largest part of the workforce. The country has come out of the “Great” recession and prospects look good. Millennials are looking for the home that fits them perfectly. 99% of Millennials searched online when looking for a home.
A Millennial Is How Old Now?
Many of you older “Millennials” and a fair number of younger ones are entering the housing market despite all of the headlines claiming that you’re more interested in avo-toast and vaporizers the data actually shows so many of you are finally ready to take the plunge that home rental markets are actually scared! Many things have kept you at bay. That being, watching your family come out of a historic recession.
The amount of student loan debt that you have incurred, general lack of credit access, and the lack of affordable housing in the urban core of cities. The last of this has as much to do with the lack of public transportation as it does affordability of housing. So with these things mentioned, it has caused you to continue to pay high rents and put off the process. Yes and I know that you being of the transient generation, sometimes it is hard to imagine putting down roots because a home is that major commitment.
However there should be some positive things to consider, as now is as good of a time as ever. Have you ever considered the financial benefit of having a mortgage, especially when comparing it to paying rent?
Making The Call: To Buy A Home Or To Keep Renting
There are a myriad of tax advantages available to owners of real estate. You are building equity in something substantial. It is a true investment and can be used for long term and short term gains. That expensive rent you pay, goes where?
Exactly! Also you may have noticed a trend of walkable, exercise friendly suburban core “mini cities” that provide sidewalks, grocery and schools. It gives you the city but the affordability of the suburbs. You also get greater access to alternative medical resources such a chiropractors, naturo-paths, accupuncurists and neurofeedback therapists.
Owning a home is a commitment and should not be taken lightly, but it is also that big responsibility that makes us feel like we have “Made It”. That is not what this is about. It is about taking that next step into adulthood and reaping the financial benefits of owning a home.
Taking Your First Steps
The first thing you need to do to buy is to get an evaluation of your credit worthiness. Yes, you can use the tools like Credit Karma and all these new handy websites. However, you need to have credit pulled and reviewed by a qualified credit person. This can be done by your qualified Mortgage professional.
Credit and Income are the 2 main sources for buying a home. Many of you may have thin credit or no credit at all. If this is the case, things can be done to help and a solid plan can be put together. Again, all this can be done by your qualified Mortgage professional.
Next there needs to be a financial plan put into place. If you have already saved money or have family helping out, you are a step ahead, for those of you who do not, this is key into buying. You and your Mortgage profession can lay out a plan to help you save. You can probably get into a house for a lot less than you think.
Once your credit is on track and you have reached your financial plan, the next step is getting pre-approved and once that is done, you and your Mortgage professional can help you get partnered with a qualified Realtor. This should be done once you have the green light to buy.
So let’s review the positives.
- Buying can give you tax advantages
- It can be used for short term and long term gains
- Paying rent stinks!
What do you need to do?
- Contact a qualified Mortgage professional
- Create a plan of action that involves credit building and saving
- Get pre-approved (the same Mortgage professional can do this)
- Get an agent
- Buy a home!!