Common Misconceptions Millennials Have About Home Buying
For millennials, many are of or almost to the age where homeownership is no longer a far-off dream. The idea of buying your first home can seem daunting and overwhelming, whatever your age. Just like most topics regarding millennials, there are common myths that mean many individuals of this generation put off finding their dream home. Our Orange County, CA real estate professionals put to rest some of the cliché myths regarding what millennials think about buying a property.
Myth #1: I don’t have enough money for a down payment.
Many millennials believe that you need a solid down payment of 20 percent or more to buy a home. The common thinking is that if you don’t have 20 percent of the home’s price saved up, then you can’t afford a home. However, there are several low- and even zero-down-payment loan options available. There are many lenders who are willing to go below the 20 percent down payment, although millennials should know that putting less money down can result in higher interest rates and monthly payments.
Myth #2: I don’t want to be tied down.
Millennials tend to place high value on being able to travel and explore new things. Most millennials believe that if they buy a home, they won’t be able to do or afford other life experiences such as traveling. Keep in mind that homeownership doesn’t mean you stop your dreams of exploration! In fact, it can help you along the way. You can rent out your property while you’re fulfilling your need for wanderlust. This gives you financial peace of mind and reassurance that you have a place to come back to.
Myth #3: Renting is cheaper.
This is a costly myth to believe. Rent prices continue to rise, and hopping on the property ladder can save you money in the long run. Every month you give your rent to your landlord, you’re helping them build equity on your dime.
Jerri Davis Group at Sotheby’s International Realty is dedicated real estate professionals that can help you buy a home in a competitive market. Serving Orange County and surrounding cities in California, contact us to find out how we can help you find your dream home.
