Why Millennials transform from renting generation to homebuyers

Why Millennials transform from renting generation to homebuyers

Two of the best adjectives to describe Millennials – carefree, free-spirited. They are associated to the YOLO culture – living life to the fullest. When it comes to their lifestyle, they prefer to rent rather than buy.

Millennials who are often thought to be the generation that shied away from homeownership is changing the reality amidst this pandemic. They are actually hitting the property market and pushing through with purchase decisions for the first time.

The following are some of the factors that have contributed to their change of heart:

• Better real estate deals

The pandemic and the economic recession have negatively affected real estate industry, that resulted to property developers offering good promos which made it easier for people to realize homeownership. Some have reduced prices by up to 20 percent, while others have stretched terms on down payment and allowed buyers to move in before completing the installment. Banks and lenders, likewise lowered their interest rates to encourage borrowing and help bolster the buying power of their target market.

• New financial priorities

Due to the absence of retail shops and outlets for leisure because of the pandemic, millennials are redirecting their finances to long-term investments, such as real estate. Staying home for long periods made them realize the importance of an ideal space they need and want.

• Work-from-home-ready setting

Most Millennials are now doing remote work and this set-up pushed them to consider moving to a place where they have the privacy and the independence to do what they love. The Gen Y’s prefer a place where they won’t have to sacrifice their lifestyle while making for a living at the comfort of home.

 

Millennials apart from being ready, willing shoppers are also discerning about the details of their first real estate investment. They are also keen on the features of the property they’re looking for. They use the power of the internet to research listings, read helpful reviews, and look for recommendations from people they trust.

As Millennials transform the way they spend their hard-earned money to investments such as a house and lot, they should also consider using online free tools such as the Monthly Mortgage Payment Amount Calculator, which computes and shows real scenarios of the monthly payments for a given loan amount. This is a basic calculator that quickly figures the principal & interest payments on a fixed-rate loan. This is a very basic tool and is so easy to use and understand but really comes in handy for home buyers as they can access it anytime and anywhere, for as long as they are online.

Furthermore , Millennials also consider these property features before buying their first home.

 

• Health and safety

Millennials are at the age when they’re starting to grow their own family, and/or caring for elderly parents, therefore a home that features a lot of open space, located in a less populated community is very essential to let growing children and older folks experience leisure without worrying about health and safety.

 

• Efficient Technology

A remote-work-ready home, a place where there is a stable internet connection is a must-have for Millennials to support their work-from-home set-up.

 

• Sustainable Living

Anything that’s energy-efficient, things that allow them to reduce carbon emissions or footprints and save money in the long run, are enticing to Millennials.

 

• Integrated, peaceful community

Establishments such as bank, supermarket, and hospital, are very appealing to millennials. They want a convenient location that is less stressful and lets them focus better on their most important daily tasks.

Amidst this pandemic, Millennials are actually deviating from being the “renting generation.” They are now shifting to being “property buyers” and taking the plunge into home ownership as they realized how wise it is to invest in real estate.

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