Homeownership is a significant part of the American dream. The white picket fence, red brick wall, and pristine lawn are not mere characteristics of an ideal home. These features signify love, comfort, and security- the ones that will welcome you home after a long and exhausting day.
There are misconceptions about the generation who should be the target market of home builders: the millennials. In spite of the millennials’ current age, 38 being the oldest and 23 being the youngest, they are deemed incapable of owning a home, considering their economic capability. Compared to Baby Boomers and Gen X, millennials are less likely to be homeowners. The rate of homeownership among millennials is 8 to 8.4 percent lower in comparison to the Baby Boomers and Gen X when they were the same age.
Initially, the trend shows that millennials move to a major metropolis like New York, Boston, and San Francisco to start up their careers. However, when it’s time to plant down their roots, they go to millennial-friendly cities like Oklahoma, Michigan, Grand Rapids, North Carolina, and Salt Lake City, to name a few. In these places, the unemployment rate and home prices are generally lower. It is said that Utah has more millennials than any other state. It’s not surprising as mortgage and refinances policies in Utah are flexible.
For a millennial, it’s still confusing to tell if it’s finally the time to own a home. The responsibility that comes with homeownership will be with you for more than a decade. Nevertheless, it can be an investment that will eventually be fruitful later on.
Perhaps, it’s better to have a list of instances which will tell you if it’s not yet the right time to buy a home. Here’s a list when to say no:
- When you still have a debt to pay.
It’s a no-brainer. If you still have a debt to pay, don’t make it difficult for yourself by adding another set of financial commitments. Doing so might hinder you from paying your mortgage.
Make sure you addressed the last of your debt issues before you purchase a home. Just because you qualify for a mortgage, it doesn’t mean you are ready to be a homeowner. Before you apply for a mortgage, check your bank account if you have more than enough for a down payment. This way, you’ll get the best mortgage plan.
- When you are being pressured to buy a home.
It’s not new to hear from family members the “when I was your age” comparison, especially from those who belong to the earlier generations. Remember that only you can create your own timeline. When you want to settle down is up to you.
- When you don’t feel like staying long in the city you live in.
It’s normal to have the desire to move somewhere else and discover what the world can offer to you further. When you see yourself living elsewhere, and making a career in another city, it can be more convenient to rent than buy a home. Moving to another place means having a new job. You’ll never know if you can still pay for the mortgage. Think first if you plan on staying for more than five years before you make that purchase.
Despite the misconception about your generation, not caring and preparing for your future, the numbers are saying otherwise. Millennials actually prefer to own a home than rent a temporary one.