ByAmy FontinelleAre you gearing up to buy your first place? Shopping for a home is exciting, exhausting and a little bit scary. In the end, your aim is to end up with a home you love at a
Real Estate Advice For Millenials
I was born in December of 1979, so even though technically the millenial generation doesn't start until 1980, I missed it by a week; however, I don't think like a generation Xer and I definitely consider myself a millenial in all aspects. So, I say with pleasure that I congratulate our generation for not falling into the mold. I have been involved in real estate for 13 years. I started out as an investor, then became a licensed Realtor in 2015. I am qualified to give sound real estate advice along with financial advice to today's young buyers.
Today's young adults, aka millenials, are the largest group of consumers since the baby boomers. However, there seems to be a shift in lifestyle and this seriously affects today's market place. For instance, millenials are waiting longer to commit to a career or becoming an employee. They are waiting longer to get married and have children, and it seems they are also waiting longer to buy homes. The millenial trend has been financial savyness; staying away from bad debt, not wanting to be a slave to a dead end job, avoiding being house poor and living in urban communities where walking, bicycling, public transportation and compact cars is the way of life. Millenials are going into business for themselves, they see the benefit of co-working environments rather than spending big money on private offices or getting stuck in long term expensive leases.
"The mortgage industry is poised to experience a monumental shift as more millennial homebuyers begin to enter the market," said Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae, a mortgage software and data company. "There are roughly 87 million would-be homebuyers in the millennial generation and 91 percent of them say they intend to own a home one day. Lenders must prepare today to meet their needs." Even though today's rates are at a record low, the credit and lending guidelines are tough. So with that in mind, millennias need to regularly monitor their credit, focus on the difference between good debt and bad debt. Good debt is spent on acquiring assets. Assets are things that put money in your pocket and or grow in value. Bad debt is spent on things that lose value and take money out of your pocket like cars, that nice motorcycle you just bought and have no garage to keep it in so you keep it in mom and dad's garage or you're paying for a storage unit. You might have even bought into a time share because your friend invited you to a free weekend at a nice resort and they suckered you into that "15 minute" presentation that turned into a 3 hour hard close where you signed a 10 year loan for 20k at 13% interest. But hey, you get to vacation for "free" once or twice a year right? What they didn't tell you is that nothing in life is free and you are paying for it. Hey, I'm not saying these things aren't fun and it's nice to be able to enjoy what life has to offer. But it's time to start thinking long term and real estate is the future.
For yhe millennial, here is some sound real estate advice. Consider buying multi-unit homes rather than single family. Especially if you're single, still not sure what your end game is, enjoying life. You can live in one unit while renting other units and letting your tenants pay your rent for you. This is the idea of a real asset. The property increases in value over time as long as you maintain it and keep happy tenants. The great thing is, let's say you decide it's time to move on, maybe get married, have children, study abroad, chase a career opportunity in another state. You can easily move and rent your unit out. You retain the asset, other people pay your loan off for you and in many instances, you create positive monthly cash-flow. That's a true definition of an asset. Also consider buying, in areas that are in an upward trend. Find a real estate professional you can trust to give you insight on the neighborhood and it's direction. Do your own research. Neighborhoods that are in an upward swing and in many cases under revitalization offer great opportunity for improving your home and watching the environment around you improve along with your home. You will find yourself in an excellent equity position years down the road.
As a real estate professional, I am honored to be in a position to help others make smart real estate decisions and find real success in meeting their real estate goals.
I want to thank my clients for selecting me as their Realtor for the past decade. Buying or selling a home is a major event; therefore, finding a real estate professional with my expertise and track r....
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