Top Five Tips for Millennials planning to buy First Home


home-buy-millenialsAs with preceding generations, Millennials are entering the real estate market in search of the means and know-how to buy a first home.
Although home ownership is a noble and lofty goal, financial conditions among this demographic of the home-buying population leaves many Millennials to question how to make this goal a reality. Here are five tips that will help Millennials to work towards owning their first home:

The Entitlement Setback

According to Time, 71-percent of adults viewed Millennials as selfish and 65-percent viewed them as suffering with entitlement issues. This general attitude among Millennials will be one of the greatest factors towards determining if they are fit for home ownership in 2015.
Whether a Millennial is in fact entitled or not, this general perception will have an impact on the home-buying process for any Millennial. When it comes to being approved for a first home loan, banks and loaning institutions are not interested in hearing how entitled a Millennial might imagine themselves to be.

Rather, these institutions work strictly by the numbers, guided by regulations and industry practices that are mostly concerned with whether or not a Millennial is worth the financial risk. This means that Millennials seeking to be approved for a first home loan in 2015 will necessarily need to undergo a major shift in thinking, in order to get lending institutions to take them seriously.

Moving Beyond Millennial Underemployment

According to a recent report, Millennials compose a demographic who experience a high rate of underemployment. Accompanying this trend is the fact that many from this demographic also are found working multiple low-paying jobs to eliminate student loans.
For many Millennials in this situation, attempting to demonstrate a genuine ability to pay down a home loan is going to be a difficult prospect in 2015. For Millennials to obtain the means to purchase their first home, there needs to be a shift towards permanent, higher-wage jobs in this demographic—to shoulder the responsibility of consistently being able to repay a mortgage. Income is simply a factor that a Millennial cannot ignore if they desire to take possession of their first home.

Knowing Where to Buy

Another factor that Millennials will need to consider carefully is where to buy their first home. According to the Chicago Tribune, areas in and around Chicago provide a first time buyer with both an urban setting and a housing market that is not appreciating in value too much at the current time. Areas that provide both these attributes make them ripe for first-time home buyers, in terms of affordability and being prime locations to lay down roots to build a family.

Low Tech Solutions

One of the major communication roadblocks between Millennials and real estate agents is directly related to the age gap and use of technology. According to a report at U.S. News, the real estate market is struggling to catch up to the tech savvy Millennial home-buying demographic.
Millennials tend to avoid calling and speaking with an agent over the phone, preferring to rather communicate via text messaging instead. Millennials could help the process along by being more willing to use conventional communication channels during this time of the real estate market technology transition.

Getting a Deal

According to the professionals of the International Realty Group who specialize in Cayman commercial property, when buying a first home, it is important for a Millennial to avoid getting caught up in the thought of simply buying the first home they see. In order to obtain the right home for the right price, a Millennial will need to do their homework.
Becoming familiar with real estate terms, such as comparables and down market conditions, will help them to gain some insight into how homes are valued within existing market trends. Using technology to learn how to properly negotiate the right price, and know from checking up on county appraisals if they are getting a home at a good price is also key.
Many analysts are hopeful that 2015 will be the year that Millennials will make strides in the real estate market. Although it is a big step to own a first home, Millennials have a lot of great information and resources at their fingertips.
Whether they choose to use existing technology to educate themselves as on the home-buying process is truly up to them. Many among this demographic are encouraging market analysts by looking forward to exchanging their monthly rent for the opportunity to build equity in a home of their own.

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