Millennials are the future of real estate. There is no doubt about that. Over time, the real estate scene has seen a changing of the guards and millennials are slowly eating the biggest share of the pie.
Millennials are the future of real estate. There is no doubt about that. Over time, the real estate scene has seen a changing of the guards and millennials are slowly eating the biggest share of the pie. A huge chunk of this generation—born between the early 1980s to 1996—are entering their 30s (for some, their 40s), entering a phase of their lives where they are needing a bigger, more personal space especially for those in the older end of the age group. A study by California-based Realtor.com showed 43% of millennials have been looking for at least a year for their future home, while 44% are building up on their bank account to cover the needed costs. However, other polls also showed millennials still fear entering the real estate realm, mostly due to the list of costs required to purchase their own property. In order to get a clearer picture of what’s on millennials’ minds about buying a property for the first time, we asked them what questions and fears they want to address. Here’s what we found out:
What she fears: Since I started checking my prospective properties, honestly I was really confused with how payment terms are determined. I still haven’t gotten a full grasp of the payment options or breakdown. Also, I am quite uncertain whether long-term payment schemes such as those going for like 20 years. It honestly scares me that there’s a chance I could not pay for it or face problems along the way. But for me, the most important thing I guess is finding a trustworthy real estate agent. What she wants to learn more about: First thing, perhaps, that I will ask is the safety of the area—whether it is flood prone, and whether it is far from any fault line, etc. These matters are so important for me because I am potentially looking for a property I will live in for a really long time. Then, I would also want to ask more about payment options that I have. Since I will be shelling out a considerate amount, I would need to know whether the property is well within my budget.
What he fears: It may sound outlandish but I am honestly afraid of regretting my decision, whether because of the location, the size, design or whatever other reasons. This isn’t PhP20 or PhP150 we are talking about; we are talking about a lifetime’s worth of savings being put on the line so I want my decision to be firm and carefully taken because I really do not want to regret anything. The uncertainty also scares me, quite frankly. While I am lucky to have retained my job, any sudden change in the blow of the wind over the next 24 hours or so is only as certain as the sun rising. What he wants to learn more about: Definitely, I want to know how to study market trends. While I’m aware the process itself of buying a house is stressful, it’s also an investment that could go in any direction so I want all the possible options at my disposal—whether I will be the one using the property or make money out of it by renting it out.
What she fears: Honestly, what fears me the most is getting my loan application be rejected by lenders such as banks. It’s a puzzle for me whether mine will be approved once I finally decide to apply for one when I’m buying a property, but definitely rejection is something not ideal because I don’t want my dreams to be derailed. Other thing I fear about is not being able to pay for the monthly amortization due to unforeseen circumstances. A lot has happened this pandemic so we can really never know what’s gonna happen next. What she wants to learn more about: Actually, the first thing I would ask my real estate agent is to help me determine how much I can afford. Definitely, I do not want to waste the downpayment I will be making only to fail to pay the monthly amortization in the long run. In terms of the property, the first thing I really need to know is whether the location is perfect for me. I also want to know more about amenities and whether the property’s value is expected to rise over time. That last one is important for me because I am considering purchasing property for investment.