Recently, there have been studies and articles stating that buying a home is not a priority for millennials and other young adults. There is also the position that buying a home is not financially possible for younger generations who carry more debt and earn less than their parents.
However, the fact is that millennials are buying homes. And they are drawn to trendy, urban areas, including many right here in California. If you are a young first-time home buyer, you should know the following important tips for buying a home here in California.
- You should not make assumptions about affordability. As this article notes, several cities in California are less affordable than other areas. However, this should not discourage new home buyers. Having good credit and a solid down payment can make it easier to afford homes in cities like Los Angeles. And the benefits of living in a specific place can outweigh the added investment.
- Preparation is essential. Before you start looking for a house, you should prepare accordingly. Such preparation can include saving for your down payment, clearing up any debt issues and checking out your loan options. Once you have done this work, you can have a clear idea for what you can buy.
- There are expenses beyond the purchase price. The list price of a home does not necessarily reflect all the money you will need if you buy it. There are moving expenses, closing costs and repairs you may need to complete. Budgeting for these additional expenses can make the buying and moving process much less stressful.
- Complications can - and do - arise. In any real estate transaction, there can be problems. Inspections can reveal serious issues; there can be confusion over property lines; there could be title defects; construction projects can delay your timeline. These are just some of the complications that can arise when buying a new house, which is why many home buyers work with an attorney.
Buying your first home should be an exciting, hopeful experience. And it can be, as long as you know what to expect.