The huge financial commitment of homeownership might seem like a goal that is out-of-reach for the younger generation. However, Millennials are gravitating to homeownership because it provides both financial and emotional stability.
Psychologically, owning a home often implies a sense of permanence and stability for homeowners. Maintaining a stable environment can be an emotionally pleasing experience. Home ownership also allows young millennials the opportunity to build a family if they intend to do so.
Tallahassee citizen Terry Horne believes the home purchasing process is easier if you have the right tools.
“Buying our first home was intense, however, homes in Tallahassee are fairly cheap,” explained Horne. “Thanks to helpful realtors and my financial institution for helping us negotiate prices.”
Tax advantages are given to homeowners by the United States government which encourages homeownership. When you purchase a home, you are able to deduct any property taxes that you may pay, alongside deducting any mortgage interest paid.
Property tax deduction and mortgage interest can be rewarding, benefiting homeowners by keeping several thousand dollars in your pocket yearly. Saving this income tax can help homeowners develop a substantial savings account over the years, building on their financial security.
According to a National Association Realtor’s 2017 Home Buyer and Seller Generational Trends study, “Millennials are the largest group of homeowners for the fourth consecutive year at a whopping 34% in comparison to baby boomers with only a 30% buyer’s rate.”
Financial firms are electrified to hear this conversation looming among young millennials. In a recent survey by Chase bank, two thirds of the young adults surveyed said, despite your homeownership status, purchasing a home is “one of the best investments you can make.”
Millennials aren’t waiting to make this purchase. It’s important for home buyers to sit down at their local financial branch and run numbers to have a strong understanding of the sort of loan they would need to purchase a home.
University of North Carolina alumna Matthew Tinckle realized budgeting to purchase a house was on the most important aspects.
”Living here in Charlotte, NC the housing market seemed pretty stable, said Tinckle. “My girlfriend and I decided to purchase a fixer-upper to borrow less money from our banks.”
Buyers are now finding themselves competing for low inventory of relatively expensive homes, which means that even older homes with maintenance issues are fetching higher prices.
For example, roof, kitchen, bathrooms, landscaping, and radiators that needs to be replaced. All of these expenses do add up when purchasing a home however, when purchasing a fixer upper the value of the home does decrease. On average homeowners plan to borrow an average of $19,000.
Perla Gordon and her husband are both North Carolina realtors who follow market trends daily.
“In our subdivision we have over 780 homes with only 2 homes for sale that went under contracts really soon after they hit the Nationwide Mortgage Licensing System,” Gordon stated. “It is something to think about.”
Millennials are not just purchasing homes; they’re fueling America’s housing market. Forget the myth that millennials don’t want to own things, that’s simply not true. Millennials are growing older, settling down, and looking to purchase homes for extra space and as an investment opportunity to make more money.