When many people start looking for a new home, they wonder what they should choose and how much of an investment it will be. Although many people aren't quite sure about what their new home will look like, the fact of the matter is that there are many aspects to be mindful of when it comes to real estate. From paying attention to how much things cost to looking carefully at your options, it really pays to understand and apply a little wisdom before you break ground on a project. Check out these posts to find out great tips about real estate.
Homeownership for Millennials is looking pretty grim. For a variety of reasons — higher sale prices, tighter lending requirements, and flat wages — people in this generation are steadily giving up on purchasing homes because they feel homeownership is out of reach. Although it is arguably more difficult to buy a home in some markets, it's still possible to do it if you get creative enough. Here are two ideas you can try to get the home of your dreams.
Try Buying Direct from Your Landlord
Just as Millennials are having trouble buying homes, older generations — namely Boomers — are having difficulty selling their homes but for slightly different reasons. Not only are they unaffordable for most of the new generation, but it appears Millennials are not interested in purchasing the McMansions built by their parents (or grandparents) generation because they're too big.
Additionally, tastes have changed drastically with Millennials preferring open concept and minimalistic designs, among other things, leaving the elaborate homes built by Boomers languishing in the market.
Thus, if your landlord belongs to an older generation, they may be desperate to offload their home and may be willing to entertain alternative buying arrangements. For instance, you could offer to purchase the home through seller financing where the landlord acts as the bank and you pay the mortgage directly to them every month.
Another option is a rent-to-own agreement where a portion of your rent goes into a fund you can use as a down-payment for a bank loan to purchase the home down the line.
It doesn't hurt to ask because the worst that could happen is the landlord declines. On the off chance the person accepts your offer, you'll be one step closer to owning a home.
Go in with Your Friends
Another thing you can try is to find one or two friends, pool your resources, and purchase a home together. This is a good option for those who live in cities where rent is exorbitantly high. Instead of packing yourselves in a tiny apartment and paying three times your salary to a landlord every month, you could get a comfortable home for much less and enjoy the savings and stability.
Remember, though, buying a home will typically require committing to a 30-year mortgage. However, it's highly likely one or more of you will decide to move out and move on. It's critical you develop a contract detailing what co-owners need to do to buy out of the home when the time comes as well as what will happen to the proceeds should you all decide to sell the home and go your separate ways.
For more ideas on buying a home in today's challenging market or help finding the right home for you, contact a local real estate agent.
Share26 February 2020
