Are Millennials Saving For Homeownership?
Most millennials dream of owning a house one day. The sad fact is that most of them don’t even have a fraction of money that is needed to make the down payment. The biggest obstacle to owning a home is their inability to make a down payment. This means that their dreams of becoming a homeowner remain just a distant dream.According to a recent report, 80% of millennials yearn to become homeowners, 72% are held back, as they cannot afford a home; 62% have less than $1,000 saved for a down payment; 44% have no down payment savings; and 40% have absolutely no savings plan in place.Even though the average price of a home has gone up, millennials don’t have to feel discouraged. If they want to realize their dream of becoming a homeowner, all that they need to do is to make some small changes to their lifestyle and savings habits.Put Money Aside Every Pay Check Even before they begin the hunt for their first home they need to have a plan that can help them save enough money for the down payment. A simple strategy is to put aside some money every month. This can help start the process that can turn dreams into reality.Affordable Price RangeOne of the most important determining factors in purchasing a home is affordability. Take time to calculate the affordable price range before you start looking for a home. All additional costs (insurance, maintenance fees, closing costs and utility payments) of owning a home also need to be considered.Reduce Rent For most millennials, rent is one of the biggest monthly expenses and reducing it can result in significant savings.Find a home that fits your budget and lifestyle. Remember that you are not just buying a home, you are buying yourself a good financial future.