August 5, 2019
Don’t Make The Mistakes Young Professionals Are Making – What You Should Know Before Buying Your First Home
Did you know that 63% of millennials have buyer’s remorse after purchasing their first home?
This is because they missed these key factors.
At the end of 2018, roughly 33% of millennials under the age of 35 owned a home, which is about 9% less than the previous generation at that age. Most of these homeowners, about 63% to be exact, have buyer’s remorse. Why is this?
Many of these individuals extremely underestimated all the hidden costs and maintenance of being homeowners. That is the number 1 reason they are having regrets. This is a very common but very risky and costly mistake.
Many people don’t do much more than comparing their current rent payment to their mortgage payment when considering the purchase of a home when in reality, it is much more than one payment to own a home. About 8% actually wish they stuck to renting a home instead of buying one. Millennials need to do a full check of their finances before purchasing a home.
Maintaining the home typically costs about 1-3% of the total cost of the home. They need to budget this into the overall cost and make sure they are able to afford this before purchasing a home. Paying things like student loans doesn’t help this situation either. This leaves millennials with barely enough or not enough money at all to pay for these extra costs. It is also difficult for them because they are used to their apartment being maintained by their landlord, but now all the pressure is on them to fix everything.
Millennials are better off playing it safe and purchasing a less expensive home that they may not be a huge fan of to start off with rather than purchasing their dream home right off the bat. This way, they will be less likely to regret the money they’ve spent than the home itself.
Although it’s the smartest, purchasing one of these starter homes may not be the easiest thing to do. There is a shortage of homes in this comfortable price range which leaves millennials stuck between waiting for one to come on the market or raising their budget to get into a home quicker. Unfortunately, most choose to overpay. In metro areas, where most jobs are, only 67% of the homes are priced right for people at this age.
Besides the cost of the home, millennials also regret other aspects like the size and location of their first home. Maybe they are too far from their job or just didn’t choose the right neighborhood. Most think their home is too small and only 11% think their home is too big. Make sure you always look at a home in person and take time to consider all the pros and cons of the home before making an offer so you aren’t left with buyer’s remorse.
Refuse to make these mistakes, Sooner or Later, You’ll Call Jim Slater.