• Sample Page

Hanover Mortgages

The Refined Mortgage Lending Company & Home Loan Lenders

Buying Your First House? 7 Tips for Millennials and Other Generations

January 21, 2021 by Brett Tams

Getting ready to buy your first house? Money Girl helps you make one of the biggest purchases of your life with 7 tips to get prepared, save money, and become a happy homeowner, no matter your age. 

By

Laura Adams, MBA
March 27, 2019

National Association of Realtors study, 36% of home buyers are Millennials or Gen Y, who are age 37 or younger. And 65% of these buyers are first-timers who are also married couples. They’re increasingly buying single-family homes in the suburbs.

Gen X buyers, who range in age from 38 to 52, make up 26% of home buyers. The NAR report shows they are ethnically diverse, in their peak earning years, and purchase more expensive homes compared to other generations. They’re the most likely to choose homes based on convenience to work and the quality of school districts. 

Younger Boomers from age 53 to 62 make up 18% of home buyers. They typically move for a job or to downsize after their kids leave home. Older Boomers in the 63 to 71 age range make up 14% of home buyers. They’re more likely to move the longest distances for retirement, to downsize, or to be closer to family and friends.

Those age 72 to 92 are part of The Silent Generation and make up just 6% of home buyers. Most have already retired and have the lowest income compared to other age groups. They’re more likely to purchase a residence in a senior-care facility than a detached home.

The process of buying a home is largely the same no matter your age. But keep reading for tips to overcome some generational challenges you may face and how to get the best home deal possible.

Tip #1: Know When to Stop Renting

Most of us start out renting because it doesn’t require a big upfront financial investment. But the downside to renting is that your monthly payments are a pure expense. In other words, once you pay rent, that money is gone forever.

When you own a home, it comes with some nice financial perks, including:

  • Amortization, which slowly reduces your outstanding loan balance with every mortgage payment you make (if you have a fixed-rate mortgage) and helps build equity in your home.
  • Appreciation, which allows you to build equity as the market value of your home rises over time.
  • Tax deductions for mortgage interest and property taxes. You can deduct interest on up to $750,000 of mortgage debt on a primary or secondary home. Plus, you can claim a maximum of $10,000 per year for state and local taxes (SALT), which includes property taxes.

Additionally, when you own a home, you can have the lifestyle you want, spread out, and express your personal style.

But depending on where you live, renting may be more affordable than owning a comparable home. This is usually the case in big cities, such as New York and San Francisco.

Renting also comes with a convenient lifestyle, especially if you don’t like dealing with maintenance, doing yard work, or you travel frequently. So, no matter your age, knowing if you should buy a home really depends on:

  • Where you want to live. 
  • The lifestyle you prefer.
  • How stable your future income is likely to be. 

Pages


About the Author

Laura Adams, MBA

Source: quickanddirtytips.com

Posted in: Spending Money Wisely Tagged: affordable, agent, All, Building Credit, Buy, Buying, Buying a Home, Cities, Convenience, cost, country, Credit, Debt, deductions, estate, expense, Family, Fees, FHA loan, Finance, finances, Financial Goals, Financial Wize, FinancialWize, Grow, home, How To, Income, Insurance, interest, interest rates, Invest, investment, kids, Learn, Life, Lifestyle, Loans, Main, Make, market, MBA, millennials, money, More, Mortgage, mortgage lenders, Mortgages, Move, new york, Personal, podcast, property, Rates, Real Estate, real estate agent, Real Estate Agents, Rent, renting, retirement, Save Money, Saving, saving money, savings, Savings Account, School, Sell, student, suburbs, taxes, tips, Travel, trends, will

Archives

  • January 2023
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • October 2020

Categories

  • Account Management
  • Apartment Communities
  • Apartment Decorating
  • Apartment Hunting
  • Apartment Life
  • Apartment Safety
  • Auto
  • Auto Insurance
  • Auto Loans
  • Bank Accounts
  • Banking
  • Borrowing Money
  • Breaking News
  • Budgeting
  • Building Credit
  • Building Wealth
  • Business
  • Car Insurance
  • Car Loans
  • Careers
  • Cash Back
  • Celebrity Homes
  • Checking Account
  • Cleaning And Maintenance
  • College
  • Commercial Real Estate
  • Credit 101
  • Credit Card Guide
  • Credit Card News
  • Credit Cards
  • Credit Repair
  • Debt
  • DIY
  • Early Career
  • Education
  • Estate Planning
  • Extra Income
  • Family Finance
  • FHA Loans
  • Financial Advisor
  • Financial Clarity
  • Financial Freedom
  • Financial Planning
  • Financing A Home
  • Find An Apartment
  • Finishing Your Degree
  • First Time Home Buyers
  • Fix And Flip
  • Flood Insurance
  • Food Budgets
  • Frugal Living
  • Growing Wealth
  • Health Insurance
  • Home
  • Home Buying
  • Home Buying Tips
  • Home Decor
  • Home Design
  • Home Improvement
  • Home Loans
  • Home Loans Guide
  • Home Ownership
  • Home Repair
  • House Architecture
  • Identity Theft
  • Insurance
  • Investing
  • Investment Properties
  • Liefstyle
  • Life Hacks
  • Life Insurance
  • Loans
  • Luxury Homes
  • Making Money
  • Managing Debts
  • Market News
  • Minimalist LIfestyle
  • Money
  • Money Basics
  • Money Etiquette
  • Money Management
  • Money Tips
  • Mortgage
  • Mortgage News
  • Mortgage Rates
  • Mortgage Refinance
  • Mortgage Tips
  • Moving Guide
  • Paying Off Debts
  • Personal Finance
  • Personal Loans
  • Pets
  • Podcasts
  • Quick Cash
  • Real Estate
  • Real Estate News
  • Refinance
  • Renting
  • Retirement
  • Roommate Tips
  • Saving And Spending
  • Saving Energy
  • Savings Account
  • Side Gigs
  • Small Business
  • Spending Money Wisely
  • Starting A Business
  • Starting A Family
  • Student Finances
  • Student Loans
  • Taxes
  • Travel
  • Uncategorized
  • Unemployment
  • Unique Homes
  • VA Loans
  • Work From Home
hanovermortgages.com
Home | Contact | Site Map

Copyright © 2023 Hanover Mortgages.

Omega WordPress Theme by ThemeHall