Naples, Florida Millennial Home Buyers

NAPLES, Fla. - April 3, 2016 - PRLog -- For the past several years I have been seeing more and more articles about millennials either buying homes or being able to buy a home.  I am not sure where people are getting their data but I am sure not seeing it.

Several things come to mind when talking about the financial situation of many millennials.  In case you missed it, millennials are classified as the generational age group 18-34.  Getting back to the financial stability of millennials, quite frankly most are a mess.

• Yes, most graduated from high school, enrolled in a 4 year college and yes even went onto graduate school.  Now most still are bootstrapped with student loans can't even dream of buying home let alone having enough left for rent and other life's essentials.  Credit card debts are piling up to pay for every day essentials.  Now many get themselves into this mess because of poor money management.  This is certainly a topic for another day.

• Most millennials are getting married later in life which makes things more difficult as well.  Building wealth is better with someone by your side like a spouse.  Couples make far more cash than single folks do.  Nothing wrong with being single the facts are couples build wealth quicker.  Most single folks are renters because they cannot afford to purchase a home on their own.  Most are surprised by the costs of home ownership as well.  Many are not thinking about closing cost, PMI (private mortgage insurance), down payments, HOA fees, more utility costs, maintenance costs, having to repair major items that break that a landlord is no longer there to repair or replace.

• Another problem facing millennials are job wages are not keeping up with rising home prices. The national average home sold price is well above $200k.  That is certainly the case here in Naples, Florida.  Although many young professionals and families are moving into the Naples, Florida area which used to be known for a retirement mecca for the wealthy, affordable housing is hard to come by.  This is driving up the rental rates because of simple economics with demand so high and low inventory of rentals, even rentals are out of the reach for many.

The good thing is that interest rates are still low so borrowing money is relatively inexpensive compared to previous years.  Down payments are still required but there are FHA programs offering only 3.5% down and other loan types for veterans or low income individuals requiring no money down.

Hope we have been able to shed some lite on some of the issues still facing millennials.  Reach out to us and we'll be glad to help you any way we can.  www.chrisleber.com