Although younger homebuyers are waiting longer than their parents to venture into homeownership, they are still feeling the urge to purchase their own home.
According to the National Association of REALTORS® report released last month, the primary reason millennials purchased a home was simply the “desire to own a home of my own.” Almost 40 percent of millennial buyers identified that as the main reason; other primary reasons for a home purchase included the desire for a larger home, affordability of homes, and the desire for a home in a better location.
Another strong reason for young renters to convert to ownership is the potential for immediate financial return – rental income. First time homebuyers willing to sacrifice a little privacy are buying two and three family homes. Although there are the challenges of managing rental property many former ‘renters’ can reduce their housing costs through the flow of cash from tenants.
The same low down payment programs available from most local banks and mortgage companies for first time homebuyers purchase of a single family home are also available for a multifamily purchase.
– Jon Dawson