Although most millennials are still in the process of renting, some are starting to steer towards the housing market and make life-changing decisions about becoming homeowners. The question is, are they ready? According to an article written by Angela Colley, entitled, So You Think You’re Ready to be a Young Homeowner,“Even though more millennials plan to buy a home in 2015, your first home purchase can still be a scary proposition. After all, how do you know if you’re too young for homeownership?” (Realtor.com).
Colley’s first piece of advice for millennials before buying a home was to know where they are going to be in the next ten years of their lives. She explained that, “Buying a home is a time commitment. If you sell too soon, you won’t build up any equity and you might take a loss on the deal,” (Realtor.com). That being said, a millennial shouldn’t buy a house unless they can be sure that they’ll be living in the same place for a minimum of five years. This becomes hard for that age group to commit to because they are just starting to get fixated in the workforce and comfortable with their current employment positions; not to mention the yearn to live in various cities is a strong one when you’re young.
The next question Colley asks before millennials make the commitment to buy a home is, “Do you have time to DIY?” (Realtor.com). Being a homeowner comes with a plethora of responsibilities – from unclogging drains to fixing leaks, owning a home means that you should have time for routine maintenance. Prospective home-owning millennials need to be prepared to trade their weekends going out to dinner and hanging with friends for improving and maintaining their new home. So the question becomes more centered around the idea of if they are willing to do so.
Lastly, Colley reminds millennials to take a look at their financial stability and really ask themselves if they can afford buying a home. She notes, “Buying is often cheaper than renting in the long run, but the upfront costs are much higher. When you rent, you have to pay only the first month’s rent and the security deposit. When you buy, you’ll have to make a down payment and cover closing costs,” (Realtor.com). Millennials who want to become homebuyers should know all the financial details before they make the decision to become homeowners, if they don’t, they may find themselves in a large amount of debt. It’s important to be fully aware of each process when it comes to being a homebuyer, and money is not one that you want to skip out on.
To read more of Angela Colley’s article, So You Think You’re Ready to be a Young Homeowner click here.