What Millennials Looking to Buy Their First Home Should Know


The rate of homeownership amongst millennials is still at a surprisingly low rate. In the past several years, the majority of people attributed this to the state of the world’s economy, however, the prolonged period of stability hasn’t done much to improve this as it should have. This is also because millennials tend to move all over the place and the concept of digital nomadism is much more widespread with millennials than it is with any other demographic. Still, there are some who decide to buy their own home and here’s what they need to know.

  1. How much home can you afford?

In order to buy your home, you’ll have to indebt yourself, which is why you first need to check exactly how much home can you afford. Keep in mind that your credit payments won’t be the only expense that you’ll face. Homeowners also have to pay taxes, as well as cover their own cost of living inside of this place. All of this tends to accumulate quite quickly. The simplest way to check how much home you can afford is to find an online calculator or, alternatively, consult a financial expert.

  1. How will you raise funds?

Another thing you need to consider is the way in which you’ll raise funds for your own home. Think about it, the loan that you opt for will determine the amount of money that you’ll eventually have to make. Also, keep in mind that the terms under which you get this credit may depend on your credit score. This is a number between 300 and 850 which determines how trustworthy you are as a debtor and it’s something that lenders will, most likely, take into consideration. There are many ways to improve it but the first thing you need to do is check your credit score, in order to see what your starting point is.

  1. Consider building your own home

The first thing you need to take into consideration is the fact that buying a home might not be what you’re looking for. In fact, you could go a lot cheaper if you were to buy a raw land lot and build your own home. While some may fear the costs of this, you need to keep in mind that building a standard-sized home isn’t your only option. The tiny house movement is getting more and more popular by the hour and about 68 percent of their owners are mortgage-free. Needless to say, this method is also quite eco-friendly.

  1. Energy-efficiency

Energy efficiency is incredibly important for millennials for two reasons. First, it lowers your monthly expenses. Second, it makes sure that your lifestyle is a lot easier on the environment. This alone is incredibly important for all those who are more eco-minded. Needless to say, these are the effects that you’ll benefit from every single day, which is why it’s so important that you make the right choice as soon as possible. When inspecting, make sure to look at the state of windows and roof, as well as the insulation of the place.

  1. The location determines your lifestyle

The choice of the location of your future home does more than just determine its value. You see, the choice of the neighborhood also determines your proximity to some vital functions and services. It determines the demographics of your neighbors and it determines the availability of work in your nearest surroundings. The more research you invest in these factors, the smaller the chance that you’ll make a bad call, a call that you’ll later come to regret.

  1. Look for professional help

While being independent may play a large role for you, keep in mind that you can’t do it all on your own. You need professionals to inspect the place, you need professionals to negotiate the deal and you need a legal expert to supervise the transfer of ownership. Inspectors need to check the plumbing and power grid, as well as check the home for pest infestation. Buyers’ agents need to be contacted about the property in general, while conveyancers need to be put in charge of ownership transfer. Regardless of how demanding all of this may seem, trying to do it all on your own can be incredibly dangerous.

Keep in mind that this is a once-in-a-lifetime type of a decision, which is why making a mistake should not be an option. Take as much time as you need in order to properly prepare yourself, consider your situation from many different angles and commit yourself fully to this investment.

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