Millenials
February 12, 2019
How are millennial combating affordability issues?
While it’s been confirmed by numerous studies that millennial are now officially in the market to purchase their first homes (and perhaps their first move-up homes), new research shows that some will take the plunge somewhat differently than preceding generations.
In a survey of 1,000 people, Clever Real Estate found that millennial aren’t afraid to get their hands dirty, nor are they scared of becoming landlords right out of the box. What they are, however, is money conscious.
The 517 millennial respondents all said they’re planning to buy a house within the next 12 months. Two-thirds (a whopping 68 percent) said they’d be willing to put in an offer on a place that needed major work; and more than half (52 percent) would consider investing in a multifamily property — these considerations taken into account for the purpose of tackling affordability issues.
About these millennial buyers
Like most everyone, we were struggling to understand the illusive millennial, so we put together a survey to figure out who they really are,” Tommy O’Shaughnessy, the firm’s research analyst, told Inman. “And we found out that, in some ways, they couldn’t be more different than their predecessors in terms of their values, expectations and methods.”
Take fixer-uppers, for example. In the name of affordability, millennials are willing to take on major home improvement projects, if not right away, at least over time on a piecemeal basis. As long as they can occupy the place right away, they seem willing to live with the inconvenience that comes with faulty air conditioning, squeaky floors and stuck windows.
Inexperienced buyers may be shooting themselves in the foot if they don’t have adequate savings or, I might add, the experience and ability to do a lot of the work themselves.
Also in the name of affordability, they’d consider purchasing a duplex, triplex or even a four-unit structure so they could make ends meet. Indeed, 9 percent said they “were interested” in renting for the passive income rentals generate.
“For some, this could even be seen as a path to overcoming obstacles to homeownership” with passive income being applied to mortgage payments and repairs, the report notes.
This could get people into trouble if they don’t have the makeup to adequately identify quality tenants, the ability to fix things without hiring expensive contractors, the patience to deal with unruly tenants and the fortitude to evict those who fail to pay their rent.
“For some, this could even be seen as a path to overcoming obstacles to homeownership” with passive income being applied to mortgage payments and repairs, the report notes.
This could get people into trouble if they don’t have the makeup to adequately identify quality tenants, the ability to fix things without hiring expensive contractors, the patience to deal with unruly tenants and the fortitude to evict those who fail to pay their rent.:
For example. In the name of affordability, millennials are willing to take on major home improvement projects, if not right away, at least over time on a piecemeal basis. As long as they can occupy the place right away, they seem willing to live with the inconvenience that comes with faulty air conditioning, squeaky floors and stuck windows.
Inexperienced buyers may be shooting themselves in the foot if they don’t have adequate savings or, I might add, the experience and ability to do a lot of the work themselves.
Also in the name of affordability, they’d consider purchasing a duplex, triplex or even a four-unit structure so they could make ends meet. Indeed, 9 percent said they “were interested” in renting for the passive income rentals generate.
“For some, this could even be seen as a path to overcoming obstacles to homeownership” with passive income being applied to mortgage payments and repairs, the report notes.
This could get people into trouble if they don’t have the makeup to adequately identify quality tenants, the ability to fix things without hiring expensive contractors, the patience to deal with unruly tenants and the fortitude to evict those who fail to pay their rent.
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While it’s been confirmed by numerous studies that millennial are now officially in the market to purchase their first homes (and perhaps their first move-up homes), new research shows that some will take the plunge somewhat differently than preceding generations.
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