04 Jun Millennials and Their Housing Preferences
Generations born between 1980 and 2000, popularly called “Millennials,” are moving into the prime spending years. The “house buying years” are usually those between the ages of 25 and 45 which means that the home buying market is the Millennials. However, surveys from all around the world have found that Millennials are not that keen on settling down and buying homes. They would rather gather a life experience than a home full of possessions.
Millennials in the Global Housing Market
Buying homes is still a traditional thing to do, especially if you are planning to start a family of your own. According to some expectations, in the next five years, a big number of Millennials will buy a home. These home buyers, however, are driven by the internet. Millennials spend more time online looking at houses before contacting a realtor. The internet can provide all the information in that field, and they tend to know what it is that they want.
However, due to the bad economy, many do not have saved money for a down payment which often means that, in that case, they rely on their parents to provide them the down payment. In such an instance, the realtors, have both the home buyer and their parents making judgments when it comes to doing a walkthrough of the desired home.
Millennials and Their Housing Preferences
Most Millennials do not see their first home as being permanent. Therefore, they are not looking for a fixer-upper. The lack of time and money in society today are driving these young homebuyers to choose a newly built home. Millennials who wish to entertain are looking for open plans where the kitchen, preferably new and up to date, flow into the other rooms. Home offices might be a high preference to those who bring their work at home or to those who work from home.
The green movement is making these home buyers aware of energy-efficient homes, which is a significant influencer in the buying decision. However, this is the type of upgrade they are willing to make in the form of solar power if wanted. As technology is a big part of our lives today, the use of smart technology is used in their daily lives, so a good internet and cellular reception are a must in all new homes.
Millennials and Financial Possibilities
As we already said before, many Millennials rely on their parents for a down payment and those who don’t usually have to make a loan at the bank if they do not have money saved for a down payment. When it comes to buying a home, it can be very stressful, no matter which generation you belong to or whether it is your first house or not because it represents a huge financial commitment.
Mortgage arrangements can be made early, and the earlier, the better because it can be a time-consuming process. One way is to get a mortgage from an independent financial adviser or a mortgage broker or lender. Before applying for a mortgage, you should check your credit report to make sure you qualify. Sometimes a booking fee is required to reserve the mortgage product you wish to have, so be aware of the additional cost.
Also, hiring the solicitor is an extra cost, and it is a person who will handle the legal work around the property. Surveyor will see if there are any problems with the house which might affect the cost of the house. Another cost that will have to be considered by the buyer is the insurance cost that made after buying the property.
Millennials and Their Housing Choices
The choices Millennials have when it comes to buying homes depend on the area they wish to live. Many Millennials want to be close to work and other facilities, but at the same time outside the urban area. Even though many would like to have the possibility to live in a suburban home, this is not always possible due to their lifestyle. They will have to make a serious decision whether they want to move in a bigger flat or detached house. A semi-detached house will be last on the list if their budget and area of preference allow them that choice.
The time for the Millennials to invest in homes are here and will be making a significant impact on real estate sales. However, the quest for the perfect home, whether it is permanent or not, is being influenced by the internet. Particular features which include new appliances, energy-efficiency, excellent location, and new technology are making demands higher. Those who want to sell homes nowadays should definitely take into consideration these factors if they want to live a modern quality life.
WRITTEN BY MATTHEW JAMES on Realty Times