Over the last 10 years several news stations have been flooded with news that the housing market was on a steady decline. As the housing market has slowly begun to shift into a healthier direction many realtors have made note that 2016 may be the best time for millennials to buy a new home.
If you poll the average millennial they will be prepared to give you a plethora of excuse on why they are not ready to purchase a new home. These excuses include: not having enough money to put down, being afraid of taking on a mortgage or even a bad credit score that needs to be rebuilt. While these are all very good reasons to rent vs. owning a home they are not good enough anymore.
A recent research study shows that a common myth of many potential home buyers is that they do not have 20% down for a down payment. While this may have been true many years ago it's no longer necessary true. In fact, there are other ways to buy home including utilizing the services of companies such as Max Cash, a group of investors that buy distressed properties. There also several mortgage companies who now accept as little as 3 percent down for homes. Three percent may not be a small amount of money but it is more attainable for millennial home buyers who may not have that high paying job yet but it can be done by making a few small changes to your life:
Have a Budget
All homes are not created equal. Before you even begin to search for a new home decide how much you are willing to spend on a home. If you know you don't intend on being in a home for your entire life don't go out and look at million dollar homes. Be realistic with yourself and your future.
Ask for Support
One of the greatest assets to your home buying process is your support system. If you have a family member who has no problem loaning money to you so you can buy a home, use them to your advantage. Getting loans from family members can be sticky situations but if you know you will have no issue paying them back it might be best to use them as a resource before running to a bank.
Consider Downsizing First
Does your 2-person family need a 3-bedroom apartment? Probably not. If you are one of millions of Americans who is renting a larger space for comfort versus convenience, consider downsizing. Downsizing could potentially save you hundreds or even thousands of dollars for a few months as you look to stash some dollars to the side for your down payment.
Pick Up a Part Time Jobs
Most people already spend 40 hours a week working a full time job so working a part time job is far from ideal. If you do have the extra time to spare, consider picking up a part time job or even a side hustle to help you generate more income.
Are you a millennial who recently purchased a new home? What tips do you have for saving money?