Millennial's and Student Debt
I recently read an article where a young man was asking advice about marrying a girl that had over $50,000 in student loan debt. The consensus was to… run, and not look back. The sad part is that this is not an aberration for many millennial today.
More and more students are graduating today with student loan debt that will take many years to pay off, if they are ever paid off. Is it any wonder that so many young people like the socialist idea of free education and the cancellation of all student loan debt without realizing where the money will come from? (The government has no money, only taxpayer’s money.)
And yet with all this debt, according to a 2018 Bank of America survey, 72% of them consider home ownership a top priority. When you look closer at additional statistics, the average home purchasing age for this group is 29, about 5 or 6 years up from previous generations. Even marriage has been deferred to a later age. Can all this be a result of debt they have accumulated while in school?
Could debt also be the reason these millennial are looking for “fixer-upper” homes. Sixty-seven per cent (67%) of them said they would put in an offer on a fixer-upper rather than a picture-perfect home, to reduce their outlay for a newer home.
Because most millennial are battling the pressure of student loan debt, they are typically hoping to secure more affordable homes in the $100,000 to $200,000 range. This is understandable, as most millennial are newer to the workforce and are still working on securing careers. However, 27% are comfortable paying between $200,000 and $299,999, and 15% of millennial home buyers are comfortable buying between $300,000 and $399,999.
Interestingly, they want to work with a trustworthy agent. Although millennial enjoy conducting their own research prior to beginning a project, they still recognize the importance in hiring a knowledgeable and trustworthy agent.
According to the 2018 Home Buyer and Seller Generational Trends Report, 90 percent of buyers aged 37 years old and younger purchased their home through a real estate agent.
This is primarily because they are first-time home buyers and are unaware of the various intricacies involved in a real estate transaction. Therefore, they will rely heavily on their real estate agent to explain the steps involved.
Additionally, according to the 2018 Home Buyer and Seller Generational Trends Report, 75 percent of millennial indicated that they need assistance from a real estate agent to better understand the purchasing process.
So, if you are a millennialist or know of one who is looking for a home, have them call us at 252-257-4822 for a free consultation. Or you may be just an old fogie who wants to sell their home, land or farm. You can call us too. 😊