Millennial homeownership. It’s not news to anyone that Millennials aren’t buying homes in the same way that the previous generation did.
You might be thinking… Fact or fiction?
Turns out there might be some truth to this. But it doesn’t mean they don’t still have dreams of “millennial homeownership”.
Naturally, Toronto and Vancouver markets have some of the highest ownership rates, among other cities like Calgary which surprisingly has the highest percentage of homeowners under 35.
The report goes on to indicate, that Millennials ultimately need more housing options. So it’s not so much about not having a desire for millennial homeownership. But rather, more so to do with college debt and rising home prices, and the 2008 recession that has left many Millennials choosing to live at home longer instead.
While that’s enabling them to save up longer to make a down payment on a home, it’s still increasingly getting more difficult to get into the real estate market today.
Urban city dwellings make renting look more attractive because that way their lives can remain “Instagram-nomadic”. While there’s a strategy to this, it’s important to consider both sides of the coin.
On the one hand, renting allows you to be more adaptive to changing jobs and cities frequently.
On the other hand, you’re missing out on a lucrative opportunity to establish equity in a home and plan for a future.
There’s no denying that getting into today’s real estate market is difficult. Which is why in so many ways, building a home is the best option for Millennials.
The cost of entry is generally much lower
New homes are generally more spacious, with a medium size of about 2,500 square feet.
Which means the ballpark cost per square foot is around $100 give or take. This is significantly lower cost per square foot than what you would pay in square footage for an established, existing home.
Additionally, if you’re building a home you only pay for what you want.
If you end up choosing to buy resale, you inherit a number of existing features that you pay a premium for. Even if you don’t want them!
You can custom-tailor every detail to your liking
This is probably one of the most attractive reasons to build a home for Millennials.
Who wants to live with someone else’s structural problems or taste in décor?
For the same amount of money (or less) you can build a home that’s completely custom to your own style and preferences.
More than that, you can include any special requests that are specifically tailored to your lifestyle.
While renovating an older, resale home is possible, you can’t make changes to the floorplan too significantly. Oftentimes, general contractors will come up against structural barriers and other issues that restrict your creative design wants.
More than that, while the renovation process is the right choice for many. In some cases (especially ones that require extensive maintenance) it can indicate other damages that have been done under the surface in an older home.
The fact of the matter is, while it’s always possible to renovate an older home, you just can’t get full customization like you can when you build from the ground up.
For Millennials, building a new home means that you can also leverage the latest in industry trends and SMART home technology. [link to internal post]
By ensuring that your home is built with the latest materials, Millennials can benefit from more durable and energy-efficient options that save them money and positively impact the environment.
Maintenance is less expensive
It’s pretty much a no-brainer, older homes have more wear and tear.
Which means certain elements of the property may need more maintenance.
Even worse, you may purchase a new home that has a laundry list of features that need to be replaced or are on their last legs. That sounds expensive.
If you build your home, there’s considerably less upkeep — which is one of the primary benefits to new construction.
Everything in your custom home is new and under warranty. Sometimes, your entire home can be protected for up to 10 years before you have to pay out of pocket. Win-win.
Financial programs are available to new home buyers
At the end of the day, there’s no wonder Millennials aren’t wanting to buy homes. You’ll need to consider having enough savings for a down payment, ensuring that your credit score is in good standing and that your job qualifies you to apply for a mortgage securely.
With many Millennials are harboring large student debt loans, there’s no wonder that buying a home and making a large financial investment feels overwhelming.
The truth is, it is possible for you to get into the real estate market.
Connect with a well-informed mortgage agent who can fully explain the entire buying and financing process. You’d be surprised to discover that building a home is much more affordable than you think.
From a financial perspective, once you have a plan and budget laid out, you’ve already figured out half the battle.
With all of the tax savings and first-home buyer incentives explained, building a home is a much smarter way to invest your money than rent.
Renting a property is like flushing money down the toilet.
Your money isn’t going back into the equity of the home, you don’t have any assets and you’re essentially helping someone else to pay their mortgage.
When you reframe home ownership to look at your property as not only a place that you live but a save planning; home ownership becomes the clear, most-advantageous choice.
Building your dream home doesn’t just mean you become a homeowner.
It means freedom. As in, financial freedom.
As a Millennial, you likely want to resist the confines of what’s expected of you.
Whether you remain lusting after a nomadic “Instagram lifestyle” or plan to put down roots for a while.
Build a home instead.