Reinventing the American Dream: Location and the Millennial Homebuyer

Posted by Laine Smith on 10/22/14 4:13 PM

Topics: Economy Home Buying

The classic Buy vs. Rent battle is something that all young adults have to combat as they enter into the "real world."  Investing in property can be a great financial decision, but as the Millennial generation continues to wait longer to get married and start families, they also are less inclined to actually buy a home as well.  According to U.S. News & World Report, "Homeownership for Americans 35 and under declined to 36.2 percent, and is the lowest on record since the census's Housing Vacancy Survey began tabulating homeownership by age in 1982."  One out-of-the-box idea that has been gaining popularity is for people to buy their first home and then have roommates that pay rent to cover their mortgage payments.

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There are various mortgage products that are specifically geared towards first time home buyers, which allow them to get down payment assistance, yearly tax refunds and low interest rates.  By buying a home and having their friends, relatives or siblings as renters, they can pay off their mortgage costs while they actually gain equity in their home.  Eventually, when they go to sell their home, they will not only profit from increased values but also a lower mortgage amount.

Where Millennials may not be buying homes, they are still very concerned about their financial stability and security.  They might know that housing could be a good investment, but think that they can't do it on their own since it's not the "traditional" home purchase process.  However, they could be missing out on an opportunity to not only create wealth,  but also spend less on their monthly housing costs.  

For more information on what lending options might be best for you click the button to download our ultimate guide to mortgages. 

Download: Mortgage 101 Handbook

Images courtesy of http://www.canva.com 

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