By Dawn Laumann, First Bank Home Loan Consultant
Do you have a son, daughter, niece, or nephew that makes up the millennial generation (ages 18-34)? According to the U.S. Census Bureau, millennials make up the largest generation in our nation’s history; shockingly, even larger than baby boomers. As this group continues to secure gainful employment and decides it’s time to enter the home ownership stage of life, their buying power will be significant and impactful.
Research suggests that millennials have chosen to live at home with parents longer than previous generations. Many factors have played into this scenario, including the post-recession employment rate, student-debt ratio, lower wages, and a reduced emphasis on reaching major adulthood milestones, like marriage and home ownership. However, as economic conditions continue to improve and change, most millennials are anticipating a bright future with homeownership just two to five years away.
As a generation that desires less traffic and pollution, easy accessibility to public transportation, and a more urban-living lifestyle, many millennials may consider condominium living an ideal first-home choice. “Many millennials seem to be averse to driving and the costs incurred by owning a vehicle,” said Dawn Laumann, First Bank Home Loan Consultant. “Living downtown in lofts and condos, with the close proximity to shopping and businesses, allows them to walk or utilize public transportation. As a result, the savings in not having to purchase or maintain a vehicle can be applied to a mortgage payment.”
Many of the downtown lofts are considered condos. “If the property resides within a warrantable development, it could be secured for a low down payment,” added Laumann. “Plus, in an effort to help get the next generation started on the path to home ownership, down payments can easily be gifted by parents or relatives.”
Laumann said condo living allows a young individual to get used to the idea of “living on their own” while some maintenance issues and grounds upkeep are still taken care of by paying the condo fee.
“Parents have the peace-of-mind that children living with them now would be moving into a secure building,” she said. “In fact, with the extensive renovations to these historic buildings to create spacious, open loft-style condominiums, many now offer increased security features and controlled entry-access.”
Condominium living may be the solution to help millennials achieve their homeownership dreams!
Whether it’s a first-time home purchase or the third, First Bank Mortgage offers a variety of home loan solutions.
Source(s): U.S. Census Bureau; “Millennials differ from other generations in almost every regard. Here’s the data,” William Cummings, USA Today