If youre a member of a younger generation, like Gen Z, you may be asking the question:will I ever be able to buy a home? And chances are, youre worried thats not going to be in the cards with inflation, risinghome prices,mortgage rates, and more seemingly stacked against you.
While theres no arguing this housing market is challenging forfirst-time homebuyers, it is still achievable, especially if you haveprofessionalson your side.
Here are some helpful tips you may get from a pro.
1. Explore Your Options for a Down Payment
If a down payment is your #1 hurdle, you may have options to give your savings a boost. There are over 2,000down payment assistanceprograms designed to makehomeownershipmore achievable. And, thats not the only place you may be able to get a helping hand. While it may not be an option for everyone, 49% of Gen Z homebuyers got money from loved ones that they used toward a down payment, according toLendingTree.
And chances are you wont need to put20% down(unless specified by your loan type or lender). So be sure to work with a trustedmortgage professionalto explore your options, find out how much youll really need, and learn about any guidelines on getting a gift from loved ones.
2. Live with Loved Ones To Boost Your Savings
Another thing a number of Gen Z buyers are doing is ditching theirrentaland moving back in with friends orfamily. This can help cut down your housing costs so you can build yoursavingsa whole lot faster. AsBankrateexplains:
. . . many have opted to stop renting and live with family in order to boost their savings.Thirty percent of Gen Z homebuyers move directly from their family members home to a home of their own, according to NAR.
3. Cast a Broad Net for Your Search
When youvesaved upenough, heres how a pro will help you approach your search. Since the supply ofhomes for saleis still low and affordability is tight, theyll give you strategies and avenues you may not have considered to open up your pool of options.
For example, its usuallymore affordableif you consider a rural or suburban area versus an urban one. So, while the city may be livelier and more energetic, the cost of living may be reason enough to look at something further out. And if you considersmaller homesandcondos or townhouses, youll give yourself even more ways to break into the market. As Colby Stout, Research Analyst atBright MLS,explains:
Being flexible on the types of home (e.g., a condo or townhome versus a single-family home) and exploring more affordable neighborhoods is important for first-time buyers.
4. Take a Close Look at Your Wants and Needs
And lastly, an agent can help you really think about your must-haves and nice-to-haves. Remember, yourfirst homedoesnt have to be your forever home. You just need to get your foot in the door to startbuilding equity. If you wantto buy, you may find making some compromises is worth it. AsChasesays:
An open-minded approach to house-hunting may be one way for Gen Z homebuyers to maintain some edge.This could mean buying in areas that are less expensive. Differentiating needs vs. wants may help in this area as well.
An agent will help you prioritize your list of home features and find houses that can deliver on the top ones. And theyll be able to explain howequitycan benefit you in the long run and make it possible to move into that dream home down the line.
Bottom Line
Real estate professionals have expertise on whats working for other buyers like you. Call me, Marie McLaughlin 727-858-7569 for tips and advice on ways you can get ready to buy.
Source:https://www.keepingcurrentmatters.com/2024/05/07/tips-for-younger-homebuyers-how-to-make-your-dream-a-reality/
