According to the US Census Bureau, only one in three millennials under 35 years of age is able to own a home, as of the end of 2018. Separate research from the Urban Institute’s Housing Finance Policy Center says that these numbers are eight to nine percentage points lower than the previous generation’s rate of property home ownership at ages 25 to 34. Should this raise concerns among the current generation?
This issue about millennials’ inability to afford a home has been going on in recent years. But, how much of it is true? Are millennials truly unable to purchase property of their own?
Homes are major life investments. Along with cars, businesses, real estate properties in Guelph are among the biggest investments a person can ever make in Ontario. But, with the way the economy is performing, many millennials are expressing their concerns and think they’ll never be able to become homeowners. While home ownership is not likely to be easy, it’s certainly something that millennials should look into as a possible investment.
If you’re a millennial and you’re willing to take that huge step, one of your first decisions should be whether you should build or buy. Here’s a simple guide to help you make an informed decision:
Buy: Going With an Already Existing Property
Cost and convenience are the two biggest advantages of choosing this option. To make the process a lot smoother, look for a highly competent real estate agents who will offer you guidance throughout the process. After securing pre-approval from a lender, you can start searching for available properties within your budget until you’re ready to make an offer. With the help of an agent, you’ll be able to look into as many properties as possible that suit your requirements. At the same time, your agent can make negotiations on your behalf and handle the paperwork. Once your offer has been approved, you’ll be able to move in to your new home in a month or so, depending on the process.
In terms of costs, purchasing an already-built property can actually be more cost-effective, although that’s not always a guarantee. With a mortgage calculator, you’ll be able to get an estimate of all the costs you’ll be responsible for.
Build: Owning a Home From Scratch
This may sound like a lot of work at first, making it a less preferable choice. Not only will you have to look for the land yourself, but you’ll also have to hire all the professionals who will take on the construction project while also monitoring all the other factors involved. But, while it does seem like a bigger project, it has a huge advantage: you’ll be able to dictate exactly what you want your property to look and feel like. No need to worry about all the health hazards that are very common in old homes, such as lead paint, mold, and asbestos. This is definitely a benefit that attracts many millennials.
Remember, before making your final choice, weigh all your options properly so you won’t be part of the statistics. Good luck!