What is your dream home? When you think of your ideal home, regardless of cost or location, what comes to mind maybe Paris France Luxury Real Estate for Sale is the type of real estate or home that comes to mind. When you picture your home maybe you envision living out in the rural or country or perhaps an overcrowded urban area. You may want a mansion or a cottage. You may want a cozy home fit for a couple, or a large home designed for a family.
There is one issue for many millennials who want their dream home. They imagine these homes. They ride around and look at these homes. They even discuss these homes with real estate agents and lenders. There is just one problem: they have no money to purchase these homes.
This is America’s largest generation in terms of the number of people between twenty years old and thirty-five years old. Based off of history, this should be the age group that is stall purchasing real estate. But that is not true with this generation. Unlike previous generations, millennials have a devasting amount of student loan debt. This debt is prohibiting them for becoming homeowners.
Most of the members of this age group are renters. Nothing is wrong renting how renting does affect the economy in massive ways. Homebuying is essential to the banks. The banks make a great amount of their profit from mortgages. A decrease in mortgages means banks make less money. When banks make less money, less money is funneled into the economy. From the renter’s standpoint, renting forever is never a good financial decision. Once someone rents for so long, the amount of money they have paid monthly in rent can total to be a down payment on a house. Thus, renters are spending money that could go towards a house to a rental simply because their debt to income ratio for home buying is too disproportioned.
The home buying market is changing rapidly. Some are excited and many are nervous. Banks, real estate agents and people aiming to buy homes are living in a different tome. Though the cost of buying homes are cheap, the money for many people is not available. With rising rent costs, people are more than ever encouraged to purchase a home. However, burdensome loan debt from college and lacking credit scores are making it nearly impossible for homes to be bought. Millennials have to be renters longer than the generation before them. Banks may have to accept that they won’t be giving out too many home loans to this generation.
For the lucky few who are of this generation who have a sensible amount of student loan debt or none at all, with a decent credit score, a steady salary and a savings to put down on a home can expect to pay little for a home. The demand for homes is low right now and so is the price. If this sounds like, take advantage of buying a home at ridiculously low price while it lasts.