The Home Buyer's Korner

Information presented should be used for educational purposes only.

September 16th, 2015

Guy looking up in color

CREATING THE DREAM OF HOME OWNERSHIP

Real Estate G+

Mortgage Lender

General Contractor G+

Understanding the Millennial Home Buyer

Milliennials

Get Pre-Approved for a Home Loan

The passing of generations has brought immense changes to the real estate market. Gone are the days that people follow this golden rule in life: Finish school, get a job, get married, and then buy a house. Millennials are not so keen on subscribing to this old school way of living, especially the part about buying a home outright. This generation is all about having options and doing things their own way, and it’s something they exercise when it comes to a residence. This result is Millennials have developed a different approach towards home ownership. 

Naturally, this changing of the guard didn’t go unnoticed. The real estate market is bending backward just to keep up with the demands of the Millennials and structure their business around them. So, how are these younger people different from their parents and grandparents in terms of home ownership? Here are the things you need to know about millennial homeowners.

They are open to renting for the long term

For Millennials, home ownership can be a very heavy burden that can strip them of life’s other pleasures. Unlike their parents or grandparents, this generation makes allotments for travel and going out, luxuries that they may be forced to forego if faced with mortgage payments. Outstanding debt is another factor why Millennials choose renting. Most of them are saddled with student debt, something that they may have to deal with for a long time. Adding home mortgage to their obligations can cripple them financially. According to a survey, “student loan debt is the largest obstacle to home buying among those who have debt. Further, 24 percent of respondents knew someone who had delayed a home purchase because of student loan debt.” 

Also, renting gives them the flexibility to relocate when the need arises, whether for employment reasons or just because they want to experience living in other places. 

They put a premium on convenience

 Living closer to work or school is a huge convenience.

The previous generation would normally save up to get a big, rambling house in the suburbs as preparation for raising a family. Millennials are not so stuck on the idea, citing convenience as a prime consideration. They don’t like the long drives that come with living in the suburbs. They would rather stay near their workplace and save time and money in the long run. Given their preference for work-life balance, they would rather make do with a smaller condo space than spending hours commuting to a bigger house on the outskirts of town.

They want to be at the center of everything

Their desire for convenience extends beyond their need for shorter travel time. Millennials, especially the unmarried ones, are maintaining social activities that take place within the city. This is why condominiums are a very attractive investment prospect for Millennials. Condo buildings are situated in prime locations and are just a short walk or drive away from places that matter to them, such as malls, restaurants, and other places of leisure. Condos also provide home security for Millennials since every building has guards and CCTV cameras in place. 

They are open to owning homes

 Buying homes can be part of the plan.

Not all Millennials have closed their doors on home ownership. Surprisingly, they can be open to the idea as much as their parents and grandparents are.  According to a survey, “many renters aged 18-34 see their current ability to own, not a lack of desire to own, as a primary reason they remain renters.” They believe that owning is more practical for the long term because it protects them against rent increases. Many Millennials are actually working towards buying their own properties. They see renting as a temporary solution while they are still saving up to buy their houses. According to a report, “38 percent of Millennials said they either would or have put off a wedding or honeymoon in order to save for a down payment on a home.” 

They are particular about high-tech conveniences

Whether they are renting a home or currently living in their own home, Millennials agree on the convenience that technology can bring them. It doesn’t matter if they are actually spending a lot of time in their dwellings; they want things done at a push of a button whenever they are around to enjoy their homes. Developers have taken note of this when considering home design for Millennials. For instance, having a modern kitchen is a must for this generation. Since they are busy and hardly have time for chores, they appreciate tools and machinery that makes living easier for them, like microwave ovens, coffee makers, and dishwashers. Smart technology is something they highly appreciate as well. They won’t refuse the luxury of having automatic or remote light and temperature control. 

They can stay in their parents’ homes

Staying with the family is a practical option.

There was a time that once someone turns 18, he can’t wait to hightail it out of his parents’ house and get his own place. Times have drastically changed since then – young adults are forced to become practical when it comes to money. What a perfect way to save lots of cash than staying with their parents? These Millennials would rather cut back on the liberties afforded by independent living just to save on rent money. Unemployment is also a major factor here. There are places in which jobs are scarce, which makes independent living a luxury that not all can afford.

Given these considerations, the real estate market has to go along with the demographic shift if they want to make good business. Adjustments have been made by developers to cater to the changing times. Right now, condo units have become more accessible to the younger working class. Units have become more affordable and terms have become more flexible. Amenities and facilities have been upgraded to appeal to urban dwellers who want convenience and comfort. These adjustments are necessary in order to encourage reluctant Millennials to rent or buy homes.

Memphis Marketing

VISIT OUR GREATER MEMPHIS AREA

HOMES FOR SALE LISTINGS

Livingston Homes for Sale

TENNESSEE HOME OWNERSHIP TOOLS

Your Home Purchasing or Refinancing & Renovation Tools,

Home Improvements, Home Renovations,

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase.

Here are just a few of the home improvements

you might consider with any Home Renovation loan

Repair or replace a roof

Install, replace or repair gutters and downspouts

Replace, repair or upgrade your HVAC system

Repair or replace plumbing

Install, repair or replace electrical systems

Kitchen remodeling (including the purchase and installation of appliances)

Bathroom remodeling, Full interior painting, Total exterior painting

Repair or replace a septic system and/or well

Disability access (wheelchair ramp, elevator, widen doorways)

Build, repair or replace deck, patio or porch

Basement waterproofing and finishing

Abatement/Stabilization of lead-based paint hazards

Replace old windows, Room additions, Finish an attic

Add a second story to your home

Replace a termite damaged sill plate (a water-damaged sill plate also)

Possible landscaping items such as correction of grading & drainage problems,

tree removal, repair a driveway and sidewalks

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Mortgage Loan Officers, Real Estate Agents & General Contractors are ready to assist you

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision-making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen you will

have the option to “Create A Printable PDF of the Presentation”.

START YOUR PATH TO HOME OWNERSHIP TODAY

FNMA HomeStyle FNMA My Community Mortgage FHA One-Time Close Construction Portfolio or VA home loan Homes for Sale REO Short Sales FNMA HomePath Properties HUD Homes USDA Homes Condominiums Co-Ops Town homes Manufactured Homes Modular Homes Mobile Homes Log Homes Second Homes Investment Property 2-4 Family Custom Home Builders Custom Built Homes Luxury Homes General Contractors Home Improvement Experts Kitchen & Bathroom Renovations Real Estate Brokers & Agents Mortgage Lenders Federal Credit Unions Community Bankers Real Estate Listings Jumbo Investor Hard Money HARP HECM Equity Zero 3% 3.5% Portfolio Non-Warrantable Down Payment Assistance Hazard Flood Insurance Arlington Atoka Barretville Bartlett Braden Brighton Burlison Collierville Cordova Covington Dancyville Dryersburg Drummonds Eads Fisherville Fulton Gallaway Garland Germantown Hickory Jackson Brownsville Union City Bolivar Withe Laconia La Grange Lakeland Liberty Hill Macon Mason Memphis Millington Munford Oakland Quito Rosemark Rossville Somerville Stanton Whiteville Williston Yum Yum Tennessee Cayce Lake Cormorant Days Handy Corner Southhaven Horn Lake Olive Branch Pleasant Hill Slayden Taska Walls Mississippi Shelby County Tipton County Lauderdale County Dyer County Lake County Obion County Weakley County Gibson County Crockett County Haywood County Madison County Fayette County Hardeman County Henry County Carroll County Benton County Henderson County Decatur County Chester County McNairy County Hardin CountyBolivar County Carroll County Desoto County Granada County Holmes County Humphreys County Lafayette County Leflore County Marshall County Montgomery County Panola County Quitman County Sunflower County Tunica County Tallahatchie County Washington County Yalobusha County 38001 38002 38004 38006 38007 38008 38010 38011 38012 38014 38015 38016 38017 38018 38019 38021 38023 38024 38025 38027 38028 38029 38030 38034 38036 38037 38039 38040 38041 38042 38044 38045 38046 38047 38048 38049 38050 38052 38053 38054 38055 38057 38058 38059 38060 38061 38063 38066 38067 38068 38069 38070 38071 38075 38076 38077 38079 38080 38083 38088 38101 38103 38104 38105 38106 38107 38108 38109 38110 38111 38112 38113 38114 38115 38116 38117 38118 38119 38120 38122 38124 38125 38126 38127 38128 38130 38131 38132 38133 38134 38135 38136 38137 38138 38139 38141 38142 38145 38147 38148 38150 38151 38152 38157 38159 38161 38163 38165 38166 38167 38168 38173 38174 38175 38177 38181 38182 38183 38184 38186 38187 38188 38190 38193 38194 38197 38201 38220 38221 38222 38223 38224 38225 38226 38227 38229 38230 38231 38232 38233 38235 38236 38237 38238 38240 38241 38242 38251 38253 38254 38255 38256 38257 38258 38259 38260 38261 38271 38281 38301 38302 38303 38305 38308 38310 38311 38313 38314 38315 38316 38317 38318 38320 38321 38324 38326 38327 38328 38329 38330 38331 38332 38333 38334 38336 38337 38338 38339 38340 38341 38342 38343 38344 38345 38346 38347 38348 38351 38352 38355 38356 38357 38358 38359 38361 38362 38363 38365 38366 38367 38368 38369 38370 38371 38372 38374 38375 38376 38377 38378 38379 38380 38381 38382 38387 38388 38389 38390 38391 38392 38393 38401 38402 38425 38449 38450 38451 38452 38453 38454 38455 38456 38457 38459 38460 3846138462 38463 38464 38468 38469 38471 38472 38473 38474 38475 38476 38477 38478 38481 38482 38483 38485 38486 38487 38488 38501 38502 38503 38504 38505 38506 38541 38542 38543 38544 38545 38547 38548 38549 38550 38551 38552 38553 38554 38555 38556 38557 38558 38559 38560 38562 38563 38564 38565 38567 38568 38569 38570 38571 38572 38573 38574 38575 38577 38578 38579 38580 38581 38582 38583 38585 38587 38588 38589 38740 38746 38759 38764 38762 38703 38769 38720.38917 38923 38943 38947 389574 38176 38632 38637 38641 38651 38654 38671 38672 68680 38686 38901 38902 38924 39063 39079 39095 39146 39169 39192 38721 38754 39038 39097 39166 39194 38601 38655 38673 38675 38677 38874 38949 38633 38635 38679 38685 38642 39402 38649 38647.38925 38967 39747 38767 38606 38619 38620 38621 38658 38665 38666 38606 38609 38617 38621 38628 38643 38646 38670 38963 38964 38732 38736 38737 38751 38753 38754 38759 38761 38771 38773 38778 38963 39038 38621 38626 38664 38665 38670 38676 38920 38921 38927 38928 38950 38958 38962 38963 38966 38701 38702 38703 38704 38731 38658 38901 38922 38927 38948 38953 38961 38965

Join us at Real Estate Social

Comments are closed.