Millennials and Real Estate in 2023
Did you know that in 2021, 43% of millennials accounted for home purchases? Many of them hope to secure a good home for their families and transition from rentals to ownership. In fact, surveys have shown that 84% view real estate a worthwhile investment.
However, 2023 hasn’t been as kind to them as the years before. In the first quarter, millennials accounted for only 14% of home purchasers! Given inflation concerns and the fear of a potential recession, it seems that they’re struggling to find their footing in real estate. To help them out, we’ve compiled some useful tips to help them get back in the game!
Here’s how millennials and real estate can get in sync in 2023:
1. Consider the costs before buying.
Becoming a homeowner isn’t just about buying the house. There are plenty of costs you’ll contend with in the future, such as inspection and maintenance fees. Plus, there’s also the dilemma of maintaining your home to be in tip-top shape. For millennials and real estate to work together, it’s important that they know what costs will be shouldered. So before you dive head-first into the real estate pool, make sure you understand what you’re getting into. More importantly, remember that costs are part of the game. A well-kept house can be a great investment, both financially and emotionally!
2. Outline your money plan and savings strategy.
When you finally decide to commit to homeownership, it’s crucial that you prepare beforehand. Now that you know what costs you’re dealing with, it’s time to plan your approah. First, you need to have a clear savings plans to help you cover for all payments, from initial downpayment to ensuing mortgages. You also need to take a careful look at your spending habits. There will be times when you have to sacrifice what you want for the house you’ve dreamed of. Lastly, always look for a way to maintain and pay off your dues. It’s not easy for millennials and real estate to stay connected, but being financially ready is always a good step forward!
3. Try reinvestment.
Millennials might believe that the house is enough of an investment to cover. However, if you reinvest your cash, you can get more value out of your property. Reinvestment happens when you divert the cash you get from the house back to the property itself. For example, tax deductions you gain from homeownership can be used to renovate and remodel your home. You can also invest your leftover funds to another lot, especially if you’re planning to move. By following this method, you can make your home more valuable in the market and get better returns if and when you decide to sell/leash it.
4. Examine real estate deals online.
Did you know that 65% of millennial homeowners found their properties online? Thanks to the digital age, it’s much easier for millennials and real estate to streamline their goals together. For example, a single click can help you explore all major listings online to fit your preferences. Within seconds, you can find multiple properties that match your budget, location, and architectural style! However, remember that you should never blindly trust what you see online. Take time to step out and see the property for yourself. That way, you’ll know whether or not the offer online is worth the price.
5. Scout and study the location of your potential choices.
Millennials and real estate rely on many factors to get the best of both worlds. One of the most important considerations to make is the location; where you choose to live has a great impact on the price of the house, the effect of the local market, and so on. Plus, becoming a homeowner means you’ll get to choose your neighbors and community. So before you say yes to a house, make sure you research the area first. If you’re lucky, you’ll find yourself in the boulevard of your dreams!
6. Review any and all documents before making a deal.
No matter how exciting a house purchase can be, always remember that the devil is in the details. Before you commit to a deal, you’ll need to review all the necessary documents required. That means looking into the mortgage deals, the deed to the house, and any existing insurance plans. While it might feel tedious, it’s the best way to avoid suffering from legal trouble. To make the process easier for millennials and real estate, take time to approach a real estate agent or attorney. Their knowledge of the business can help you see if a deal is worth its weight or if it needs a few changes.
7. Remember that buying sooner is always better.
Time and tide wait for no man, and neither will the housing market. If there’s one thing that millennials and real estate has in common, it’s the need to get things done quickly. Remember that prices tend to increase over time and new offers or deals can be made before you make your choice. So if you want to secure a good deal, you have to act fast. However, don’t mistake this for rushing into a decision; the key is to understand when and if you’re ready to commit. Once your finances and timing are aligned, take that first step ASAP!
8. Find the right agent.
Millennials and real estate deals can sometimes feel misaligned. Perhaps there’s a detail that doesn’t make sense to you or there’s a negotiation that doesn’t seem to go anywhere. In these moments, you’ll need a guide that can help you navigate the confusing landscape of real estate. That’s why an experienced and informative agent can make all the difference. Under their watchful eye, you can discover the best deals and tick all the necessary boxes to get your dream home.
If you’re looking for an expert team with key insider knowledge to help you seal the deal, then Pacific Playa Realty is the place to go! Our agents are longtime residents of Los Angeles; we know every street, neighborhood, and property like the back of their hand! The team can provide you with crucial market information to stay on track with the latest mortgage deals and property prices. Plus, we have over 80 different agents that you can work with to keep things simple and direct. Whether you’ve lived here all your life or you’re moving in for the first time, let Pacific Playa Realty find the perfect home for you!
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