As a recent survey shows, millennials not only face financial difficulties on their journey to homeownership, but also lack knowledge when it comes to key aspects of the process.
According to a study by Lombardo Homes, 75% of millennials (currently aged between 28 and 44) no longer want to rent and are instead aiming to buy their own home.
However, 77 percent said their rent was so high that they couldn’t save enough money to pay it – and 58 percent admitted that despite having the money, they didn’t feel ready to buy their own home.
—Denzel George, 29, Douglas Elliman
Photo credit: Anthony Cumberbatch Jr.
Denzel George, a real estate agent with Douglas Elliman in Franklin Square, says millennials are more likely to be afraid to take risks when buying a home unless it’s the perfect property.
“If they want to buy a halfway decent house but know it’s not going to be a forever home, they might be too worried and think, ‘What if I start a family?'” says George, 29.
But if millennials have the financial backing, now is the time to take the plunge, says Arielle DiSalvio, who works in Real Broker’s New York office in Hauppauge.
“This is how you build a future for your family and can afford a bigger, nicer home later. But you have to start as soon as you are able to buy a home,” said DiSalvio, 33.
“For a young couple, a starting family or an individual, buying a home as soon as possible is a way to build your future and create wealth,” she added.
— Arielle DiSalvio, 33, of Real Broker NY
Photo credit: KCollections Photography/Kelly Codrington
To understand what they’re getting into, this generation should get the most up-to-date information possible, she added. DiSalvio frequently posts tips and informational videos on Instagram to directly reach her millennial clients who are first-time homebuyers.
“I think a lot of the knowledge gap comes from our parents,” she said. “They had a very different experience buying a house 35 years ago, and it’s not the same as it is today.”
The market is evolving rapidly, which can also bring challenges: “Things are changing dramatically and we can’t even keep up with each other,” added George.
—Luis Molina, 23, of eXp Realty
Photo credit: Katherine Nuñez Photography
Luis Molina, a real estate agent with eXp Realty in Hauppauge, recommends that millennials attend home-buying seminars offered by banks on Long Island.
“One of the main problems I see with a lot of first-time buyers: They fall in love with a house and don’t know what they can afford,” said Molina, 23. “That’s why I think it’s important to educate yourself on the process and the funds needed before you even start house hunting.”
James Britz is executive vice president and chief operating officer of the Long Island Housing Partnership. The nonprofit holds monthly counseling sessions for first-time homebuyers via Zoom, with the next one taking place every Friday.
Additionally, Long Island residents can schedule free one-on-one meetings with HUD-certified counselors at their Hauppauge office or schedule a virtual appointment with them.
Since this is the biggest purchase of your life, it is important that you come by and find out about the process.
— James Britz, Executive VP and COO of the Long Island Housing Partnership
“We always recommend just coming in and talking to someone,” Britz said. “This is the biggest purchase they’ll make in their life, and it’s important to come in and learn the process.”
The nonprofit also partners with elected officials at informational events where mortgage lenders and real estate agents provide advice and answer questions.
This type of education is crucial because “the home buying process can be scary if you’ve never been through it before,” Britz said.
Rachel Weiss joined Newsday in 2016. As a multimedia real estate and housing reporter, Rachel writes stories, contributes to and appears in video packages. She was the lead reporter for Newsday’s LI Acts of Kindness series.
