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63% of millennial homeowners regret buying home: survey

  • V
    Vid
    I think buying a home is a good idea but people with buyers regret make some common mistakes. If you can't get/do the following, don't buy: 1) make a minimum 20% down payment and get a fixed-rate competitive interest rate, 2) no PMI or points, 3) make the mortgage payment with one two-week paycheck, and 4) get a home inspection contingency in the contract and hire a home inspector. If you can and you like the home and location, it's a great investment. It'll help tremendously when you get closer to retirement. Rent is flushing the money down the toilet if you're living somewhere for the long term.
  • D
    Diana
    Im not quite a millennial (age 35) but i regret the timing of my home purchase. I bought fall of 2007, the very height of the housing boom, and within 6 months, when the bubble burst, lost 50% value in my home. what was supposed to be a small "starter" home, has now become a prison where we slowly dump money into it in an attempt to get to the "break-even" point so would even have an option to sell. Timing was terrible, but if we waited until after the bust, the stopped issuing mortgages making it impossible to buy at that point. It wound up being a catch-22 scenario, and we are stuck in a small home that *might* be worth what we paid over a decade ago, with a still very sizable mortgage that we still have a whopping amount left to pay off. the "re-finance" that was supposed to be a great help, was another flop, and has us still paying $180 a month in "private mortgage insurance" (not home owner's insurance- thats separate) Do i regret buying, kinda, do i regret paying the astronomical amount i did, when i did. MOST DEFINITELY
  • A
    AJandJared
    I buy and sell homes for a living. (I would call it “flipping,” but we rarely do any serious upgrades. I live in a vet volatile market. For about 5 years (2012-2017) values were jumping 25% a year. In a market like mine, buying is a no brainer...on the way up. Just don’t get caught in the decline. However, this is an atypical market. My grandmother for instance lives in Ohio outside Columbus. She’s been living in the same house for 50 years and if you account for inflation, it hasn’t really accrued much value over that time. Her advantage of course is that it is paid off. Now...what if you are young and need mobility? Does it make sense to buy in your 20s? That depends if you need to be mobile for job opportunities. A home purchase is an investment. It could go up or down in value over the next few years. You most likely won’t be getting much equity in the first 10 years of ownership because very little of those first payments go to principle in a 30 year mortgage. The average homeowner moves ever 7-10 years. So...the average homeowner basically makes nothing on their investment. You would be better off renting and investing money in the market than buying a home as an investment...unless you intend to stay for a long time. Don’t fall for the whole “American dream” bit. There are strong arguments for and against home ownership. Make the best investment for you.
  • P
    Pepper
    Mortgage payments are often lower than monthly rent rates. The problem is coming up with the down payment and in some cases qualifying for a mortgage. Wages are stagnant and home prices are high (again) so saving up enough money for a down payment is more of a stretch than it used to be.
  • J
    Jose Ole
    Most people regret buying houses because they buy houses they can't afford. Just because the bank says you can afford a $786,000 mortgage doesn't mean you can.
  • I
    IndependentEye
    An IMPORTANT FACT that millennials should consider is that, unless they are a government employee, they will have NO PENSION. A home is an asset to protect retirees who have no pension. If they do not own a home, they will still be PAYING RENT when they retire - with no income and most without any savings.
  • S
    Soothsayer
    Renters indirectly are paying the same expenses, and all they have in the end is a box of rent receipts to show for it. Renting makes sense if you plan on moving in the near future.
  • C
    Chris
    I'm 60 years old, when I was young you saved 20% to put down on a home or you didn't buy one. We didn't start out with a 2 car garage, 2 & 1/2 home with a full basement. We bought 3 bedroom ranch homes with a crawl space and one full bath and a single car garage. Millennial's think they need the home that they moved out of their parents home. Things don't come in one day it takes work and patience.
  • A
    AJ
    The facts of life with home ownership is that you have to scrape by for a decade after the purchase to make ends meet (rent rooms, forego other purchases and travel, etc). But after that things are good...since inflation will lower the percentage of your income you pay for housing. My friends who did not purchase a home have been suffering for the past three decades, and completely missed their opportunity to purchase due to rising housing prices...
  • m
    mark
    My only remorse is that I didn't start buying property earlier in my career and that I stayed in my starter home too long before converting it to a rental.