The American Dream used to be all about owning your own house, where your family can be safe and sound with a white picket fence out front. But, for many millenials, the American Dream has lost some of its luster.
Millenials today (this group has a mushy definition: anyone born between 1977 and 2000, according to some) face a lot of challenges in the house-buying arena.
In some markets, competing with other, established homeowners for desirable homes is a losing battle: previous homeowners with good credit usually have more equity from a previous home and more money saved for a down payment, as well as an established financial history. On top of this, houses are getting very expensive around the nation! (Click here for an article about how this affects millenials.) In some areas of the country, such as urban California, houses are valued so high it’s almost impossible to win the bidding war. Sellers often make tens of thousands more dollars than the listing price!
A major roadblock for millenials trying to buy a home is difficulty in getting home loans, which is in part due to another difficulty: high student loan debt. (We published an article here about financial assistance with buying a first home.) Many millenials feel they just can’t afford a house payment in addition to their other debts, or can’t afford to save for the down payment.
Relief in Sight!
In East Tennessee, mortgage prices are often the same, or lower, than rent. Housing prices around here are so comfortable, it makes sense (if you’re planning to stay in the area for more than three years ) to invest in owning a home. And, especially in rural areas, it’s easy to get down payment assistance from government loan programs. Plus, when you make mortgage payments on time for more than three years, it’s just like putting money in an equity bank. When you’re ready to move, you can sell your home and roll over the equity into a down payment on a new house. (Or use the money for whatever you need it for.)
Don’t Forget the Dog!
Of course, buying a home is about more than just financial considerations. A home is an emotional and time commitment, too! What kind of lifestyle are you looking for? Millenials often have a different answer from Boomers, when it comes to lifestyle. For example, this article says that millenials are more influenced by their dog than any other reason when it comes to buying a home. Sure, extra space for the family is nice, as well as the idea of investing in real estate and being more fiscally responsible, but having a more stable place for the family pooch wins out over what we consider the more traditional reasons for buying a home.
Home ownership might not make sense in other places, but here in East Tennessee, low home cost (and low cost of living,) options for down payment assistance and the chance to invest in your family’s future make buying a home a great option.
Whatever your reason is for house hunting in East Tennessee, check out DarleneReeves-Kline.com to get started.