Millennials…

A recent article posted to CNBC.com stated that 70% of millennials regret buying their homes for the following reasons:

Overspending on the downpayment
Underestimating ongoing cost
Settling for something that’s not quite right

First of all, the taxonomy applied to generational groups is flawed. Generation Y is a specific (although varying widely) range of birth years that which also encompasses the Millennial group. One cannot choose their generation, but you do have to decide whether or not you are classified as a Millennial.

As a Gen Y’er who strives to never fall into the Millennial category, I feel the criticism of my contemporaries is justified. To save time (and perhaps my career) I will focus on dispelling the aforementioned regrets.

buffalo+young+millennial+home+buyers

Case in point: why is this a stock photo. Why is there a need for a photo of a 23-year-old couple as the implied owners of this huge house.

Overspending on the downpayment
You can purchase a home for 0% down, but 3-5% is more common. Therefore, the issue is the cost of the home, not really the downpayment. Although there are many factors contributing to home prices, the reasons a Millennial ends up paying more than they want for a house is because they are unwilling to start at the bottom. Millennials are the “right now” generation. Thanks to streaming television, crazy fast internet, meal delivery, Uber, etc. they have never had to wait for anything or put forth any effort to plan for the future. I bought my first house when I was 24 for $70K. We scrapped together 2100 bucks for a down payment, then spent the next 2 years getting it livable. True, it’s impossible to find a home under 100k now, but wages and jobs are vastly improved from 2009. Buy the home you can afford and you won’t regret overextending yourself on the downpayment.

Underestimating ongoing cost
Unlike your phone, you can’t turn in your A/C unit when a new one comes out. Stuff breaks. We negotiate home warranties for our clients. That will get you through the first year. After that, welcome to adulthood. Although it seems like renting is a carefree way to live, each month a portion of your rent is being budgeted for potential repairs. Consider doing this yourself and building an emergency fund. There is one cost that won’t go up; your monthly mortgage payment. Unlike your rent, that can go up by 10% with 30 days notice in many lease agreements, your 30-year mortgage will not.

Settling for something that’s not quite right
This complaint and the first go hand in hand. Millennials are confused as to why they should move out of mom and dad’s house into something less posh. Well, mom and dad worked for 30 years to move on up to the east side; they didn’t get everything they wanted out the gate. Settling is the word Millennials use for making a decision. Life is full of imperfect decisions that have to be made. Not everything is rainbows and unicorns and even if it were, the rainbows might not be bright enough and riding animals with horns is a dangerous pass time.

In conclusion, if you find out that life isn’t always perfect, working hard is hard work, and you can’t always get what you want, give us a call and buy a house. Don’t be the kid who peaked in high school. Being a homeowner and taking responsibility is the cure for Millennialitis.

Next week, I will find the cure for Hipsteritis.

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