As a member of Generation Y born between 1980 and 1995, you may be buying a home at an older age compared to your older siblings or parents. After roughing it through the Great Recession, many Gen-Y or Millennials living in California rightfully feel they deserve to have a special first home buying experience. According to a recent report by the National Association of Realtors, Gen Y is a real estate force to be reckoned with, representing 31 percent of home buyers and 12 percent of home sellers. Gen Y or Millennials make up the largest share of first-time buyers at 76 percent. When considering tips for first time home buyers, you may be surprised to hear not everyone thinks Gen Y needs to buy a tiny resale starter home. New construction homes in Southern or Northern California are appealing choices for Millennials.
Buying new is one of the best tips for first time home buyers in the Millennial generation because it allows you to focus on building a career rather than repairing, fixing and renovating a money pit. Although some professionals earn a lot of money flipping homes, the average person rather focus on decorating a fresh new space. With all the architectural features in new homes, it’s exciting to furnish, decorate and bring life to your new construction home.
Think long term
Other great tips for first time home buyers include thinking about the future and buying a home you can grow into. According to the National Association of Realtors’ report on different generations, 6 percent of Gen-Y homebuyers purchased multi-generational homes. Multigenerational homes are ones that can house the owners as well as aging parents or older children. When buying a new construction home, look for models that include a bedroom and bathroom on the lower level in case you do need to care for aging parents. Down the road, you may want to give your college-age child space that is separate from the rest of the home.
Lock in low rate
Some financial issues to consider as first-time buyers include the down payment as well as the terms of a loan. The report showed 88 percent of recent buyers of any age financed their home purchase, but 97 percent of Millennial buyers used financing. In most cases, you can afford more home by choosing a 30-year loan with a fixed rate. As far as a down payment, you will avoid paying PMI or private mortgage insurance by coming up with a 20 percent down payment. The most important thing is to lock in a low interest rate while rates are still below 5 or 6 percent.
Trumark Homes is a builder who draws a lot of sophisticated Millennial home buyers. For more tips for first time home buyers and information about hip, vibrant urban infill projects in Milpitas, San Jose and Silver Lake California, please contact us.