Millennials are known for frequenting Starbucks, traveling extensively, and seeking for a work-life balance. The previous generations have this perception and without considering the other financial factors, they’re wondering as to why millennials stay longer in their parent’s houses and rent rather than purchase their own home.
In this day and age, it’s simple to say that almost everything is made more easier, faster, and convenient, thanks to the advanced and continuously improving technology. However, almost everything is also priced more or less higher than decades ago, the same applies in the housing market.
The reality is, most, if not all millennials receive stagnant income while the housing market increase in value. This doesn’t help in achieving their dream to be homeowners, especially when the downpayment is the heaviest burden to shoulder.
On the other hand, there are young homeowners that have challenged and fought the stigma. And they’re leaving a great example to their fellow millennials—that being a homeowner at an early age is possible. Here are a few ways that can help you achieve in becoming a homeowner in this time, given your age.
Manage your spending habits
This is a no-brainer. If you’re planning to finally take the huge plunge and invest in your first house, learn and start to budget as early as you can. If it means skipp the latest iPhone or sneakers, make the sacrifice.
Money will become tight, it’s a fact. It will be difficult to see a chunk of your savings cut and go to the down payment in a flash, but it’s an investment worth taking.
Save. Save. Save
Watch your spending habits and cut your impulse purchases. Once you have a clear grasp of your money—where it goes, how much comes in, how much is left—and developed a solid budget system, start saving.
Keep an eye on the housing market
Sometimes, there’s no better time to purchase a house than now. But not everyone has the money to invest it with. So they wait. Prices varies and plays depending on which city you want to live in. but the prices won’t be that way forever. The cost with increase or decrease, one way or another. So even when you’re not ready so long as your bank account is, watch how the value goes in the housing market.
If you do your math with how much you pay for rent and how much your mortgage would be, and it appears the amount more or less gives you a go signal to own a house, go for it. So long as the other factors you ought to consider are all in one page, go for it.
Get financial assistance
As a first-time homebuyer, you can look into getting home ownership programs or assistance available in your country or city. They can offer you financial aid for a part of your down payment or loans. Of course, these programs and assistance have specific requirements for one to qualify. It could be different in each city. Check and review every program you inquire for and deliberate which one best fits your or you and your partner’s needs.
About the author: When she’s not looking over Pinterest searching for Home decoration and design ideas, Chie Suarez regularly writes for PAAL Kit Homes. It is a company that manufactures and supplies steel-framed kit homes that help Australian families build their dream home.