Contrary to popular belief, the Millennials are no longer the youth who are hell-bent on undoing everything the boomers have worked so hard to create. Often blamed for their desire to spend money on avocado toast and expensive coffee, Millennials are now between the ages of 24 and 38 with the elder of the generation, or Gen Y looking ahead to their 40s. They have grown up and many Millennials, despite their reputation, are looking to put their money into the housing market.
This shift in priorities means that while some Millennials are looking into mortgage refinancing options to move to bigger homes to accommodate growing families or lifestyle changes, others are looking into what it involves to get a foot on the property ladder. With more and more developers taking younger generations tastes and preferences into account and catering to their needs — including shifting away from the typical concept of suburbia as preferred by the Boomers and older generations, the market is becoming more and more attractive to Millennials as they look to put down roots and prepare for the next chapter of their lives.
But what should first-time buyers know before investing in their first home?
Get Pre Approved
Get all your ducks in a row before you even start house hunting. Make sure your finances are up to scratch, clear outstanding debts, keep up to date with all your financial commitments, and get a pre-approval before you start searching for your new home to reduce any hiccups and delays associated with getting a mortgage approval or even refinancing their mortgage.
Do Your Research
Knowing the market trends in your search area and understanding what incentivizes sellers to accept offers and who they sell to can help you to get an edge when it comes to house hunting. Refrain from simply rushing into buying any property and have faith that your ideal home is out there for you. Buyers regret is a very real and common problem for those who were too eager to make a purchase without making all the checks or allowing themselves time to fully appreciate what being a first time home buyer entails.
Utilize Online Tools
These days the demand for homes from first-time buyers and those looking to relocate, or move to a bigger property is outstripping the supply. Avoid missing out on properties hitting the market by networking with as many realtors listings as you can. Be the name on everyone’s lips when a home hits the market or by checking online and being proactive in your search. Between first-time buyers and investors, the market has become increasingly competitive with houses being snapped up at an exponential rate compared to previous years.
Buying a house for the first time is a huge step for anyone of any age, but in a housing market that is so unstable, it is downright terrifying. Knowing what you are getting into and what to look out for will help make the buying process for Millennials much easier.