I think most of us who are older than 30 fantasize at times about going back to college.
The University of North Carolina at Wilmington — I like to jokingly refer to it as “The Harvard of the South” — is where I went to school and I don’t regret it for a second. Campus was just a few miles from Wrightsville Beach, my favorite beach on the planet. Between beach, beer and bikinis, it was difficult to focus at times…
Focus, Dean, focus.
If we only knew then, what we know now.
I happen to know a lot of recent college graduates (through my association with Georgia Tech and Tech athletics) and they are embarking on “the real world” for the first time. Soon, they’ll be getting the largest paychecks of their young lives. Some will spend loosely, some will pay off student loans and still others will start saving and investing.
Almost all of them, however, think that owning a home is a distant dream, or at best, an investment down the road. What many of them don’t understand — as smart as they may be — is that it’s easier than they may think to own a home, and it may not be necessary to continue renting that apartment when you could be making mortgage payments.
This is part of a story written by Jon Coile on Inman.com:
You do not need to wait while you save huge amounts of money for a down payment. As we all know, the mortgage world is changing rapidly and dramatically right now. A mortgage that might have been impossible to obtain before Thanksgiving 2014 may, in fact, be totally possible now in the New Year. Lender standards are regaining some flexibility. Down payment requirements are going down — now, in many cases, a down payment is only 3 percent of the sales price, or even 0 percent for veterans. Underwriting for self-employed borrowers that was incredibly strict in 2014 is moving back towards a common-sense standard.
The pendulum isn’t swinging back to the wild days of 2006, but if a buyer was dis-qualified by a lender just last month, re- engage! We are in a new market with new guidelines. Potential millennial buyers shouldn’t think that just because they have a high-speed Internet connection and the brains to read between the lines on blogs that they also have the ability to self-qualify — or, even worse, disqualify themselves for a mortgage. We need to strongly encourage them to meet face-to-face with a mortgage professional. Help is free, so take it.
Read Jon’s entire story here.
The Millennials will play a huge role in real estate in 2015, according to the experts. Statistics show that owning a home remains a goal for America’s youth, who are just pursuing the dream at a different pace than their parents did.
This is part of a story written on Realtor.com by Melissa Dittman Tracey.
Millennial force: Younger professionals are having more luck in the job market, which is expected to help more of them jump into home ownership in the new year. Overall, employment is on the rise, but jobs for Millennials — particularly those aged 25 to 29 — has risen by 3 percent. That’s one percentage point above the nationwide rate. According to some forecasts, Millennials are expected to drive two-thirds of household formations over the next five years. The forecasted addition of 2.5 million jobs next year, as well as an increase in household formation, will likely drive more first-time home buyers into home ownership, according to realtor.com® projections.
Tracey and Realtor.com do a great job on this article.
More on the Millennials from this Trulia article about what to expect in 2015:
“Undoubtedly, the purchasing power of the millennial demographic packs a serious punch. And it seems that homeownership still plays a key role in the American dream, especially among young adults — an overwhelming 93 percent of young adult renters responded yes when asked if they will be purchasing a home someday.”