The millennial generation isn’t known for settling down. But to everyone’s surprise, they’re entering the real estate market at full force, surpassing baby boomers and Generation Xers. Though it’s exciting to invest in a new home, it’s important to do it the right way. If you’re a millennial looking to buy a house or apartment, here are five tips to keep in mind.
Pay off student loans
One of the biggest challenges for millennials is paying off student loans and consumer debt. These two things can really dampen the process of moving and postpone your dream of buying a home. But we all know buying a new home isn’t cheap. Of course, you’re probably not buying a place in Central Park Residential Towers Dubai, but that doesn’t mean it won’t financially affect you. Before making a purchase like this, you should be debt-free. If you do have debt, you need to sit down and look at the numbers.
Look for red flags
When you’re buying a house, think of it as if you were going on a date. When going into a home, you’re checking for any prominent red flags. By red flags, you should look at the roof, any signs of infestation, or leaks. They may not look bad right now, but they could end up costing you a fortune to repair the damage. Buying a home is exciting, but always enter a new home looking for flaws.
Don’t forget to add in the extra costs
The price tag of a home is never what you end up paying. When it comes to buying a home, there are additional costs. Make sure you factor in extra expenses such as buyer’s closing costs, down payment, and moving costs as they will affect your overall budget.
Create a budget ahead of time
If you already haven’t, you should get prequalified for financing. It’s not a difficult procedure. It will provide you with the amount you qualify for and creates a budget for you to follow during your search. The worst part is finding a home you love, and then discovering you’re not able to afford it. Get prequalified beforehand, and you’ll know exactly what you’re able to afford.
Don’t give into temptation
You may see a house or two that you love, but don’t jump into things so quickly. Instead, be patient and take your time when looking for a home. This isn’t something you can return or switch overnight. See as many houses as you can as then you’ll start to understand the housing market a bit more. Rule of thumb: don’t buy the first house you see.
Buying a home for the first time is an exciting and unforgettable experience. If you’re ready to take the next step and buy a home, by all means, you should enter the market. But do it smartly. The first home you buy shouldn’t be a purchase you regret. Use these five tips when buying a home, and you’ll find one you love.