While it is true that millennials don’t have the same opportunities our parents had, that doesn’t mean it is impossible for us to get on the property ladder. If you want to learn how to improve your chances of becoming a homeowner, keep reading. Plus, f you are coonsidering to rent instead of buying, check out the best cities to do it.
Rising property values and limited availability are factors that truly affect the way we plan our economy. If you want to access some good opportunities, you need to start making wise financial decisions at an early age. You don’t need to be a homeowner on your early, mid or even late twenties, but if you eventually want to get there, you need to get started:
Investing in real estate takes money, so it is important to build a structured career. But it also takes time. So instead of planning for a short-term business breakthrough to become wealthy all of sudden, make a carefully crafted long-term plan.
This will help you in many ways, for example, it will help you build a good and strong saving habit that you will find useful throughout your life if you want to reach financial independence.
After doing some online research, you might feel that getting on the property ladder is not worth the trouble. But, again, while it is definitely difficult, it is not impossible. You might need to make some sacrifices in order to save enough money to buy a house, but those sacrifices are just temporary. Maybe you won’t go on vacation this year, because instead, you invest that money in a high-interest savings account.
Be prepared for unbudgeted expenses
When your goal is to buy a home, you need to be prepared to pay more than you think. First of all, you might need to buy new furniture or maybe you can’t fit all your current furniture and you need to pay for extra storage. Research all the costs that might come up and stash some money to cover them, whether it is insurance, higher bills, etc.
Find the right loan
You need to take the time to do some research and find the right loan. Compare interest rates, government subsidies and mortgage providers that best adjust to your current situation, depending on how much you have saved as a down payment.
Also, compare what the provider’s customer service is like, because you will have to deal with them for a long time.
CHOOSE RENT OVER HOMEOWNERSHIP IN THESE CITIES
When house-hunting, the location is a key aspect to take into account. It can affect the cost of renting and owning a house, which can make the first option much cheaper in certain cities.
In New York City, the difference between the average monthly rent and housing costs (for homes with a mortgage) is huge. Even though last year there was a $250 difference, with renting on the cheaper end, this year the cost of the median monthly rent is almost half of what homeowners pay.
The gap between the median rent and housing payments per month (always considering homes with a mortgage) is a big one in Boston. Luckily, the housing market in this city is the second-fastest-growing one after the slump that was caused by the current pandemic.
San Diego provides a similar scenario: the home prices (for those with a mortgage) are rising. This is the main reason why renting has become much cheaper in comparison, even during the COVID-19 pandemic.
Even if the median monthly rent and housing costs (considering homes with a mortgage) aren’t as different as other cities on the list, Hartford (Connecticut) still proves to be a very good place to rent. It’s said to have many hiring opportunities and high job satisfaction levels.
Both the average renting and housing costs per month (when it comes to houses with a mortgage) are relatively low in Chicago, compared to other cities on this list. However, experts had predicted before the pandemic that its home prices and sales would be lower, which would give renting the upper hand.
The difference in the monthly payments for rent and homeowning (for homes with a mortgage) in Philadelphia is one of the lowest in this list. The average rent and home values increased during the year of 2019, but the number of available houses decreased. This is one of the reasons why renting is an interesting option in this city.