Finally, the millennial generation has started to enter the housing market. At least, they should be. Unfortunately, between a volatile job market, high student loan debt, and the delaying of life events like marriage, millennials have been hesitant to take that step into buying their first home. However, despite what they may believe, the home market is currently great for millennial homebuyers. Here are the top five reasons why millennials should take that leap of faith and enter the world of homeownership.
- Mortgages Are More Affordable. Between today’s historically low interest rates and the abundance of mortgage products currently on the market that allow down payments as low as 3.5%, it is much easier for first time homebuyers to find affordable housing options.
- Less Strain On Your Application. Not only are mortgages currently easier on the millennial budget, but they’re also easier on their credit. Credit requirements have eased significantly, allowing lower credit scores than have been accepted in years to be eligible for a mortgage. Plus, the variety of products on the market allow for more people to find a mortgage that will fit with their particular financial situation.
- Freedom in Owning A Home. Owning a home means being free to decorate and change it in whatever way. There are now options to paint, change the flooring, hang photos, or even take down whole walls without having to worry about putting everything back when it’s time to move out. The house belongs to the homeowner, not a landlord who gets to call the shots.
- Enjoyable Tax Breaks. Thankfully, a homeowner’s mortgage interest, and many other home-related expenses, is deductible from income tax. Thus, owning a home can actually help decrease tax burdens. Unfortunately, this does make tax filing a little more complicated for homeowners, but it will be well worth it in terms of savings.
- It Helps Young Families Build Wealth. Owning a home means no longer having to worrying about paying rent and that money is now actually going toward a mortgage and not just a landlord. There won’t be any stress over rising rent prices and the money that goes into each mortgage payment will begin to build equity and contribute to a primary source of a homebuyer’s net worth. Owning a home means millennials can start padding their own retirement fund and not that of a landlord.