Are you a Millennial? 5 tips for buying your first home

In 2020, millennials will be buying the bulk of real estate in the U.S., according to Realtor.com’s 2020 Housing Market Predictions. This could be due to the fact that they are currently the largest living adult generation in the United States. As a result, they have begun to reconsider its housing conditions. Most millennials buying their first home are learning about the world of loans, mortgages and interest rates. Millennials also bring to the real estate table considerations that generations before them have not faced in such depth, such as debts from student loans. This article provides characteristics for millennial home buying considerations.

It’s clear that buying a property is one of the biggest decisions the millennials are facing right now. If you are a millennial buying your first home, here are some tips to make that dream come true!

1. GET YOUR FINANCES IN ORDER

Student loans are one of the biggest challenges facing millennial homebuyers. According to Forbes, over 45 million Americans are paying off a national student loan that average $32,731 per graduate!

As if student loans weren’t enough, consumer debt has postponed the home-buying dream of many millennials. In fact, NAR reports that, second to student loans, the two expenses that delayed saving for a down payment were credit card debt (32%) and car loans (32%).

Consequently, before deciding to buy a house, millennials need to organize their finances first. Some ways to do that is by setting a priority to pay off the student loan. Once that is achieved, use the money you were using to pay off the loan to pay for the next largest debt you still might have. These could include credit card debt and/or car loans.

Therefore saving is the key to homeownership! This can be done in multiple ways by cutting down unnecessary costs. By sticking to a budget on expenses used for leisure, entertainment or eating out, you can start saving for that down payment. I understand how being in your 20’s or 30’s, it is hard to have a budget set for each aspect of your monthly expenditures. However, it is a small sacrifice to pay if your ultimate goal is to buy a property. 

2. FIND A TRUSTWORTHY REAL ESTATE AGENT

Negotiating and knowing the real estate market is not easy. This is why it is highly advisable to find a local real estate agent that knows about the city and area you are looking into purchasing a property. 

This is the person who will be in charge of helping you make one of the most important decisions of your lives. Look for those who transmit you trust, security, and extensive knowledge in real estate. Furthermore, those who understand your needs and go the extra mile to help you get your dream home throughout the process. Last but not least, when buying or selling a house, you want a real estate agent who negotiates the best deal and treats you as their most important client.

If you want to have a chat with me about your real estate needs, please email me at naomi@RealtyAustin.com or contact me here.

3. DETERMINE YOUR ESSENTIAL NEEDS

Buyers in their early 30’s tend to be more established in life. I encourage these buyers to share with me what for them are “must haves” for their future home. We reference this list often throughout the buying process and will even sometimes make changes after we have seen a few houses.

Knowing what you are looking for in a house is imperative, especially if you and your partner have different wants or needs. This will also give you and your partner peace of mind. You know that you have found the “perfect” house when you feel the house checks off all the important boxes on your wishlist.

4. DO NOT SETTLE

When buying a new home, it is very easy to think the first house you look at may be “the perfect one”, or at least the one that “meets all your needs”. Hence, it’s important to trust your instincts and not be a conformist.

Pay attention to all the details of the property you’re considering to purchase. Unless you have found the property you feel in your gut happy with, it is best to look for more properties. The reason being that you can compare them and choose the right one for you considering your price range.

I found that most of my clients spend a period of time looking at houses online and physically before they feel very comfortable with their choice.

5. THINK BEYOND NOW, THINK LONG-TERM

A hip condo downtown may appear to be an extraordinary spot to set up your first permanent residence. However, consider how that investment will look like in a few years. Where will your profession and career take you? What appreciation does the area have?

On the off chance that a single-family home is too overwhelming, think about an attached duplex or townhouse with a smaller parcel size. By doing so, you could have a more extensive amount of purchasers later on and the equity gain will often surpass that of a high-rise building.

I help clients think through different scenarios and determine their goals longterm. Are they looking for a house that provides them with a high quality of life? Are they most interested in a high rate of return for their investment? With their short and longterm goals in mind, we can go find the home that will make them happy for years to come.

Where Can tesla Build its Factory NEAR Austin ?

Austin is again a top candidate for Tesla’s new assembly plant, but where would Tesla is likely to build its plant in Austin? This factory is going to be larger than their California plant, which employs 10,000 people. As a realtor, I want to make sure I keep my clients and myself informed of large developments such as this one. This is because this type of development increases the value of the areas around it. It brings other large retail companies to support it by providing services and goods, and this all, increases the demand for residential properties. And as you know, Austin MSA has very low inventory to start with, so as demand increases, prices are expected to appreciate as well. Therefore, knowing where such developments may land allow for an excellent way to start investing in the area early on.

Every industry has its own needs, so their real estate needs also change from industry to industry. So, for Tesla’s assembly line, what needs will they have that will help determine the best location for its plant?

This plant will be assembling the new Tesla’s pickup truck, and though, they haven’t yet announced publicly that Austin’s was selected, what better state for this type of car is there!? We love our trucks in Texas!

Here are some of the needs they will have for such a development:

  • Hundreds of acres
  • Access to rail roads
  • Proximity to airports
  • Easy highway access
  • Affordable housing

Here are some of the candidates and why:

City of Hutto – Dual Rail Site

The City of Hutto offers a Dual Rail Site that is over 1,480 acres. This site provides great access to the site via US 79 and SH 130, and minutes from Interstate 35. There are several airports are nearby including Austin Bergstrom Airport. It is also flat and cheaper than Austin.

City of Taylor – RCR Logistics Park

The RCR Logistics Park is located between Hutto and Taylor. It provides 750 acres of buildable land. It is also currently in the process of building rail road infrastructure, which may provide customization to Tesla. It also provides easy access to IH35, 79, and SH130.

City of San Marcos – Air Rail and Truck Terminal (SMART Terminal)

This development sounds very exciting to me. San Marcos has a large University and easy access to both Austin and San Antonio. The SMART Terminal is about an 800-acre development just south of the San Marcos airport and was approved by the city last March, 2019. The land will be also near rail lines, which are scheduled to be completed next year.

City of Austin – Robinson RaNch

This is a 7,000 acre land to the north and east of Parmer Lane in North Austin. It sits across the street from the Apple Inc. campus (they bought 133 acres of it), and a few miles from Dell Technologies Inc.’s headquarters, Samsung Austin Semiconductor, Hewlett Packard Enterprise, Abbott Laboratories, Emerson Process Management and many other major employers. It has access easy access to Mopac and 45. This is a great location, though I find hard find to believe that it will be a top pick for an industrial plant.

City of Austin – MetCenter

This is a smaller parcel of raw land of approximately 60 acres that sits along 183 and Metropolis Drive in Southeast Austin. It provides very easy access to the airport.It also provides easy commute from nearby cities such as Buda, San Marcos, and San Antonio. However, I think this one will also probably fall lower in their list.

I hope you find this article helpful! If so, please like it so I know what content you are looking for. Also, if you want to have a chat with me about your real estate needs, please email me at naomi@RealtyAustin.com or contact me here.