There is a huge population of millennials waiting on the sidelines, thinking that they can’t become homeowners in 2017 due to student debt and the high price of real estate. But with the right planning and strategy, there are ways without risking a financial collision.
Have the Facts
As with anything new, concerns, dangers and the lack of accurate information represent barriers to entry for many millennials. The education of millennials in the areas of real estate will require your becoming familiar with their obstacles, issues and styles in communication.
Real estate is still one of the opportunities to generate wealth that millennials have; and they need to know this.
According to some sources, by age 35, between 40 and 50% of college graduates own homes, regardless of whether they took on debt to attend school. The statistics are not as good for those without a college degree, which puts that group in the 30% range.
Currently, according to the U.S. Census, fewer than 40% of Americans under 35 own a home, compared with more than 60% of Americans overall. Historically speaking: The average age of first-time home buyer in the 1970s was 29 or 30, according to Zillow. In 2015, the average age of first-time home buyer, according to Zillow, is roughly 32.
Proximity to a job can often make it difficult to initially save for that down payment when high rents squeeze millennials’ ability to put money aside.
Good job markets often put home prices out of reach.
The first approach in ‘reaching millennials’ is to have answers and examples in hand.
Parents can be helpful, especially in the early stages of becoming a homeowner, by providing a portion of the down payment. Purchasing a home does not always require a 20% down payment. The knowledge of the real estate agent or loan officer can become very valuable in terms of creating a working strategy.
Adopt a Style of Communication
Millennials have certain communication preferences: some like texts, others like email and still others prefer the personal touch of a phone call. It’s up to you to discover which is appropriate and how often they need or want updates. As in most cases, the stage of the purchase journey will often dictate which is best or most appropriate.