It’s time for Millennials to get into the housing market, the time is right. Even though the housing market is under saturated (not enough inventory for the demand) given what’s happening with the Fed rate, the interest rates being at their rock-bottom, lowest in history, it’s time.
I often decry Millennails, why? Well, for one, they seem to be doing things differently than we (Baby Boomers) did. The stereotype of these young adults living in their parents’ basements, not owning a car, opting for food delivery and ride-sharing services, well that’s alot different from how I came up. Plus it’s also fashionable for Boomers to criticize a generation that is seemingly more interested in the planet than their pockets, is willing to hang with the parental units longer than we ever wanted to because it’s so darned expensive to move out. And besides, I’m just an old curmudgeon screaming “get off my lawn.” Or so my son says. He also makes it clear that I’m not always his most trusted adviser, throwing around that term “OK Boomer” a lot. But here is where I do believe I’m right.
Post Boomer generations (Gens X, Y & Z, Millennials, et. al.) are proving to be good at paying their bills on time. Data suggests that these generations are responsible with their money. I will say that this fact, combined with interest rates falling through the floor, and plenty of programs to help first-time home buyers get a mortgage with as little as 3.5% down (FHA loans), and even public assistance in some communities to help with the down, it’s very possible to buy a home for next to nothing and even with the cost of insurance and taxes, you still wind up with a monthly mortgage payment for less than a rent payment.
How long it will last is anyone’s guess, especially with the uncertainty of the global coronavirus and what may lay ahead for the economy, but investing in real estate is almost always a sure bet. So I would venture to say unequivocally, that it’s time for post Boomers to get into the real estate market, and start investing in their future.