The COVID-19 pandemic brought the complexities of the modern world to light. More so, however, it emphasized some of the financial anxieties today’s young people face. While many young buyers may be interested in purchasing homes, the expense keeps many of them from pursuing that dream.
Young buyers who aren’t sure how to navigate today’s housing market can look to Andrew Shader. Mr. Shader has years of experience increasing the value of specific properties and navigating each client’s restricted budget. Clients who partner with Mr. Shader can subsequently better assess the quality of their potential homes and secure the finances they need to establish their own patch of private property.
Young Buyers Underestimate Their Ability to Buy a Home
Millennials may not be teenagers anymore, but their generation has its own financial tells. Investors between the ages of 23 and 41 are more reluctant to make big purchases than the members of the generation that came before them. Ergo, many young buyers underestimate their ability to purchase a home. The booming housing market has not alleviated some of these concerns. Young buyers face a seller’s market where sellers can list their properties for above-average prices.
However, interest rates on today’s mortgages are noticeably lower than they have been in the past decade. Similarly, millennial buyers can often underestimate what an average monthly mortgage payment might look like compared to the rent they already pay. These lower-than-expected costs tend to make homeownership more viable for those millennials who choose to pursue it.
Down Payments Are More Manageable Than Most People Think
One of the most intimidating parts of purchasing a home can be facing its down payment. Traditionally, young buyers are expected to front at least 20 percent of a home’s total cost before paying off the rest, courtesy of a mortgage.
That is no longer the case. According to the NAR, down payment costs have been dropping since mid-2019. Nowadays, young buyers are only expected to pay 12 percent of a home’s total cost at its initial purchase. That means that it’s easier than ever for young people to secure the properties that suit them best.
Homes Are Becoming More Expensive
In the 2021 housing market, this isn’t always the best idea. If a potential buyer feels apprehensive about making a housing purchase, they may choose to put that purchase off for a few months or even years. At this point in time, it’s believed that the average home price will only continue to appreciate. That means homes and private property will only become more expensive over the next several months, if not the next year.
Young investors interested in purchasing a home should consider doing so sooner rather than later. Investors who secure their property sooner can save a substantial amount of money both on their down payment and on their mortgage, ensuring that they have more liquid assets to utilize in the future.
Andrew Shader Makes Finding Affordable Homes Simpler
Andrew Shader is an entrepreneur and a successful real estate developer and investor in Fort Lauderdale, Florida. He got his Business Management and Marketing degree from Florida State University. After spending years in the insurance industry, Mr. Shader decided to shift his focus to real estate. Andrew specializes in value-added properties and boosting property value through investment.