Millennials Guide To Buying Homes
Investing in real estate or buying homes is often seen as an old man’s game. This could perhaps be based on several reasons such as affordability, millennials preferring to rent or even, millennials waiting to get married and have children first. According to Pew Research Center, anyone born between 1981 and 1996 (ages 23 to 38 in 2019) is considered a millennial and Urban Institute reports that home ownership rate among millennials is 37% (ages 25 to 34). This is around 8 percent lower than Gen Xers and baby boomers as at that age.
That being said, if you’re a millennial with little or no real estate knowledge and want to get started on this journey, the points below are for you;
Real Estate Literacy
The first step is getting knowledge. There are free online resources that are readily available to arm you with the basic knowledge that will guide you on that path of real estate investment. Get knowledge! Get knowledge! Get knowledge! This cannot be over emphasized. With the influx of many properties, it is easy for you to get overwhelmed, confused or cheated, so do your research!
Before you can invest, you must have developed a culture of saving. Many financial experts warn against borrowing money to acquire investments. It’s important you have money in reserve for your investment goals. Buying a house for example is a big investment and would require months or years of funds. “Spend to save” is a quote you can incorporate when it comes to spending and savings. What this means is that anything you wouldn’t get a return of investment on, should be put on hold till your financial goals are met.
No man is an island, we are built for community. Although there are negative comments on the internet about investing with friends and family, its has proven to be an important resource or tool which cannot be neglected. Let’s highlight how it can help you when it comes to investing in real estate. Investment clubs involve you pulling funds, knowledge and information from other sources other than yourself. Some of these clubs have members that are not new to real estate investments, which would be of great help to you. There are legit ones you can join that requires little or no financial risk.
Patience and long-term view
The last thing I’d leave you with is; a long-term perspective will produce more results than a short-term perspective. The big picture is the best picture.