Can Millenials Afford To Buy A Home?

Do 46 Million Millennials Know They Are Mortgage Ready?

 

Many have written about the millennial generation and whether or not they, as a whole, believe in homeownership as part of attaining the American Dream.

Millennials have taken longer to obtain traditional milestones than the generations before them, such as getting married, having kids, and buying a home. However, that does not mean that they do not still aspire to achieve those things.

History shows that people tend to buy their first home around age 30. Nearly 5 million millennials will turn 30 in the next two years. This will continue to fuel demand for housing.

This is also one of the many reasons why the millennial homeownership rate has continued to grow over the past few years. 48.4% of Americans between the ages of 30-34 now own a home.

There are over 46 million millennials (33% of the generation) who are considered “Mortgage Ready”,meaning they meet the qualifications to be approved for a mortgage today!

• a FICO Score ≥ 620
• a Back-End Debt to Income Ratio ≤ 25%
• no Foreclosures or Bankruptcies in the last 7 years
• no severe delinquencies in 1 year

Rob Chrane, CEO of Down Payment Resource, commented on the findings of the report,

“We now know there are millions of buyers with the income & credit necessary to qualify to buy a home. The biggest question is:

Do they know it? …Unfortunately, many renters don’t investigate homeownership simply because they don’t believe it’s an option.”

The good news is that more and more millennials are realizing that they can afford a home now. Even so, more can be done to increase awareness of low down payment programs to attract even more of this generation.

New data from realtor.com shows that in December, millennials accounted for 42% of all new home loans originated in the month. This is more than any other generation.

Bottom Line

If you are one of the many millennials who may be “Mortgage Ready” but are unsure what your next steps should be, contact me (or a local real estate professional) who can help guide you on your path to homeownership.

Milennials- Stop Renting And Start Building Wealth!

Millionaire To Millennials: Don’t Get Stuck Renting A Home… Buy One!

In a CNBC article, self-made millionaire David Bach explained that: “The biggest mistake millennials are making is not buying their first home.” He goes on to say that, “If you want to build real financial security, real wealth for your lifetime, then you need to buy a home.” Bach went on to explain: “Homeowners are worth 40 times more than renters. Now, that first home doesn’t need to be a dream home, it can be a very small home. You might literally have to buy a small studio apartment, but that’s how you get started.” Then he explains the secret to buying that home! “Don’t do a 30-year mortgage. You want to take that 30-year mortgage and instead pay it off early, do a 15-year mortgage. What happens if you do a 15-year mortgage? Well, one, you pay the mortgage off 15-years sooner, that means you’ll be able to retire in your fifties. Number two, you’ll save a fortune (on potentially hundreds of thousands of dollars in interest payments).” PS- Pro tip from Kristen if you set up your payments with your lender to be drafted ‘Bi-Weekly’ instead of once per month, or you make even ONE extra payment per year, you will also reduce your mortgage to 17 or 18 years, and still keep your payments lower with a 30 year mortgage. These steps also pay off your mortgage quicker, by reducing the principal and interest payments. If you can do both of these- you’ll definitely pay your mortgage off in 15 years (or less)! What will it cost to pay your mortgage in fifteen years? He explains further: “For fifteen years, you got to brownbag your lunch. Think about that! Brownbag your lunch literally for fifteen years. You can retire ten years sooner than your friends. You’ll have real wealth, because you bought a home – you’re not a renter. And you’ll be financially secure for life.” Bottom Line Whenever a well-respected millionaire gives investment advice, people usually clamor to hear it. This millionaire gave simple advice – if you don’t yet live in your own home, go buy one. Who is David Bach? Bach is a self-made millionaire who has written nine consecutive New York Times bestsellers. His book, “The Automatic Millionaire,” spent 31 weeks on the New York Times bestseller list. He is one of the only business authors in history to have four books simultaneously on the New York Times, Wall Street Journal, BusinessWeek and USA Today bestseller lists. He has been a contributor to NBC’s Today Show, appearing more than 100 times, as well as a regular on ABC, CBS, Fox, CNBC, CNN, Yahoo, The View, and PBS. He has also been profiled in many major publications, including the New York Times, BusinessWeek, USA Today, People, Reader’s Digest, Time, Financial Times, Washington Post, the Wall Street Journal, Working Woman, Glamour, Family Circle, Redbook, Huffington Post, Business Insider, Investors’ Business Daily, and Forbes. Have questions on how to begin? Contact us: Name(required) Email(required) Website Comment(required) Submit Δ

7 Signs You Could End Up A Millionaire

CNBC

 

© Business Insider  Do you invest consistently? Generate passive income? Are you decisive?

If so, you could be on track to become a millionaire. No one can guarantee you’ll reach seven-figure status, but if these routines, habits and personality traits describe you, you’re doing something right.

Here are 7 signs you could be on your way to striking it rich.

You have multiple streams of income

As author Thomas C. Corley found in his multi-year study of self-made millionaires, the rich “do not rely on one singular source of income,” he writes in “Change Your Habits, Change Your Life.”

“Sixty-five percent had at least three streams of income that they created prior to making their first million dollars,” Corley says, such as real-estate rentals, a side hustle or a part-time job.

You save to invest

“Investing money is how you will get super rich,” says self-made millionaire Grant Cardone. “The only reason to save money is to one day invest money.”

In fact, how much you save and invest is often more important than the size of your paycheck. As personal finance expert Ramit Sethi writes in “I Will Teach You to Be Rich“: “On average, millionaires invest 20 percent of their household income each year. Their wealth isn’t measured by the amount they make each year, but by how they’ve saved and invested over time.”

You surround yourself with high-achieving people

“You are only as successful as those you frequently associate with,” Corley says.

Steve Siebold, self-made millionaire and author of “How Rich People Think,” agrees. “Successful people generally agree that consciousness is contagious, and that exposure to people who are more successful has the potential to expand your thinking and catapult your income,” he writes in his book. “We become like the people we associate with, and that’s why winners are attracted to winners.”

You’re decisive

After studying over 500 millionaires, author Napoleon Hill found that they’re good at making choices. As he writes in his 1937 personal finance classic, “Think and Grow Rich“: “Analysis of several hundred people who had accumulated fortunes well beyond the million dollar mark disclosed the fact that every one of them had the habit of reaching decisions promptly.”

“Those who reach decisions promptly definitely know what they want, and generally get it.”

You have specific goals for your money

If you know exactly what you want, you’re one step closer to achieving whatever it is you’re aiming for.

Most self-made millionaires plan to get rich and then make it happen, Corley’s research finds. An overwhelming 80 percent of the wealthy are “obsessed with pursuing goals,” both daily and long-term, he writes.

Related video: This mindset is what separates the middle class from the millionaire class

You prefer books

The rich “would rather be educated than entertained,” Siebold writes in “How Rich People Think.”

They appreciate the power of learning long after college or any formal education is over, he says: “Walk into a wealthy person’s home and one of the first things you’ll see is an extensive library of books they’ve used to educate themselves on how to become more successful. The middle class reads novels, tabloids, and entertainment magazines.”

You think big

If you set your expectations exceptionally high and are up for any challenge, you’re on the right track. After all, “no one would ever strike it rich and live their dreams without huge expectations,” Siebold writes.

This is an update of a previously published story.

If you have questions about how investing in real estate to build wealth, give me a call and let’s talk!

 

   

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