Whether you’re a millennial, or you know someone who is a millennial, tackling the housing market, knowing how to go about buying and maintaining properties is a must. Understanding how different generations communicate, invest, and care for their properties can go a long way as a landlord or property owner yourself. When you know what to expect when renting or selling a home to a millennial, you’re also less likely to feel caught off-guard by any of the decisions they make regarding their new property.
They’re Making Smaller Down Payments:
In the past, it was not uncommon for prospective homeowners to put a significant amount of money into purchasing a new home as a down payment. However, as times have changed, it’s now easier than ever for younger generations to invest in homes for much less money upfront. For instance, today, millennials may find a deal to invest in a new home at as little as 2-3% down in total, depending on the type of residence they’re interested in, their current location, and their credit score or financial history.
Investing in Land and Tiny Homes:
Another trend to keep an eye on when it comes to millennials and the housing market is that they’re more interested in living ‘off the grid’ or investing in tiny homes. With the skyrocketing costs of traditional homes and locations, living ‘off the grid’ or investing in much smaller living units is now becoming more popular than ever.
Joining Households:
Millennials are becoming increasingly cognizant of their rights, tax laws, and property requirements before investing in a home of their own or moving in with someone else. It’s important to keep in mind that any amount in excess of $5,430,000 for single individuals and $10,860,000 for married couples will be subject to estate taxes, even if you’re married. With an unpredictable housing market and global economy, the joining of households and entire families is becoming increasingly commonplace, especially among younger buyers and the younger generations altogether.
Moving to Rural Locations With Affordable Housing Options:
Moving to a more rural area is another way to cut costs and reduce unnecessary expenses. It’s also estimated that approximately 70% of the entire globe’s population currently resides in a structure that contains some form of concrete, which is optimal for comfort and cooling purposes. Housing is often much more affordable for those who are currently on a limited budget in rural areas or areas where the population is not as dense as a traditional metropolitan city.
Waiting for Lower Interest Rates:
At the moment, it’s not unusual to notice a slowing of investments and purchases, especially among the millennial crowd. Many millennials today are focused on obtaining second jobs or starting side hustles to set money aside to invest in their own homes in the future. Other millennials are well-aware of the climbing interest rates, prompting them to wait for rates to plummet before making an investment of their own.
Renting to Cover Maintenance Costs:
When you’re learning about ideal temperatures in the home and with your current utilities, you’ll want to set your thermostat and water heater to the proper temperature year-round. It’s ideal to set any residential water heater to 120 degrees Fahrenheit, according to CNET, for optimal comfort and to reduce energy usage, waste, and costs in the home. Some millennials prefer renting to offset the costs of traditional maintenance required when you’re a homeowner. This will vary based on the income of a particular millennial and the average cost to purchase a home where you’re located.
Knowing how millennials go about purchasing and maintaining their properties is imperative if you’re in charge of handling various homes or residential units for sale or lease at the time. When you’re aware of how millennials approach the buying and maintenance processes of owning property, you can better prepare yourself ahead of time once you begin presenting tours and walkthroughs of your home.