By Allison Goodhart
ALEXANDRIA,VA- Time and again, we hear from our friends and peers that there’s “no way” they can buy a home, for a variety of reasons. We’re happy to say, it absolutely is possible to purchase a home at this stage of life. Below are the most common millennial home buying myths—busted!
The Myth: I can’t afford it.
We know – life is expensive. You’re probably paying off student loans and making car payments while living in a high priced area. Coming up with a down payment and adding a mortgage payment is out of the question.
The Reality: The tax benefits in the first few years of homeownership can actually make monthly mortgage payments cheaper than your current rent—after your down payment. Even better, that reduced housing expense will go toward an appreciating asset that you own. Why not pay your own mortgage instead of your landlord’s?
Also, plenty of mortgage programs are out there for first-time buyers, and some require little or no down payment. For more on buying your first home, our first-time buyer’s guide at thegoodhartgroup.com.
For more inspiration, read my article in the September Zebra: “What Sex and the City Taught Me About Money.”
The Myth: I’ll be locked into this home forever.
We get it—you like your freedom. You’d rather use Uber than buy a car. You rent your wardrobe. You want to be able to trade your digs just as easily.
The Reality: Since the DMV is more transient than most regions, flexibility is key. To maintain maximum flexibility, look for a property that will be well-suited to rent in the future. You should also immediately, and continually, make improvements to your home. You’ll increase its property value and achieve maximum ROI when the time does come to sell.
The Myth: I can’t afford the location I want.
You want to be close to shopping, dining, entertainment, and public transportation. So does every other millennial. Developers know this and so the housing prices in my target area are out of reach and competition is fierce.
The Reality: There is some truth to this one, but it’s no reason not to start looking. We can help you find “Coming Soon” properties. These are listings that haven’t hit the market yet and won’t appear on any other site. Let’s talk about the amenities you’re looking for, and find properties that fit your criteria before anyone else does. The bonus to going this route is that you won’t have to fight for a lease in a crowded rental market.
The Myth: I can’t afford my dream home so I may as well wait.
Whether your dream home is a sleek urban condo or a charming bungalow, it’s just not realistic at this phase of your life.
The Reality: It is very likely that your first home won’t be your dream home, but that’s no reason to sit out of the real estate market. The sooner you invest in a home, the quicker you’re building equity. It’s appreciation in this property that will enable you to buy that dream home down the line. Again, why pay someone else’s mortgage? Pay your own, and watch your home’s value grow.
The Bottom Line
Why pay your landlord’s mortgage when you can be paying your own? Don’t let these myths of homeownership stop you from getting your foot in the real estate door. While your first home most likely won’t be your dream home, it will set you on the path towards achieving your real estate dreams. Reach out today. We’d be happy to help you get started!