Do You Believe Homeownership Is Out of Reach? Maybe It Doesn’t Have To Be.

-

 It turns out, millennials aren’t the renter generation after all states Cynthia Eastwood - President/Broker of Bello Sol Inc-West USA Realty of Prescott. The 2022 Consumer insight Report from Mynd says there’s a portion of millennial 

and Gen Z buyers who are pursuing homeownership as a way to build their wealth, but it may not be exactly the way previous generations have done it. The study explains how they’re breaking into the market:

“. . . younger generations of Americans are not buying into that dream in the same way that older generations have. A growing number of Americans are choosing to make their first real estate purchase as an investment property.”

Instead of buying a home and moving into it themselves, some young buyers are purchasing a home so they can use it as a rental. This tactic may be gaining popularity, at least in part, because of the affordability challenges brought about by today’s higher mortgage rates. The report above mentions how many people in this group are considering this approach. It says:

“Almost half of Millennials and Gen Z (43%) are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X.”

Why Younger Buyers Are Buying a Home To Use as a Rental

This strategy allows buyers to continue living in their current location, like the bustle of a city apartment or a neighborhood that they know and love, where they couldn’t afford to buy. But instead of giving up on the idea of owning a home, they buy a home in a more affordable area with the intention of renting it out.

In a way, they’re getting the best of both worlds. They live where they want, and they still own a home where they can afford it.

Their goal is to generate passive income and diversify their assets. It works like this: in addition to having a rental stream of income, the equity they build in their house will also help grow their net worth over time.

Bottom Line

If you’re thinking about buying a home as an investment strategy to build your wealth, connect with a real estate professional to explore your options and nearby areas that may have homes that fit what you’re looking for.

To learn more about the Prescott, Arizona real estate market contact Michael Eastwood CEO of West USA Realty of Prescott at 928-636-1500 or visit us at www.westusaofprescott.com Mike will introduce you to one of his professional real estate agents. If you like to search on your own our website has an IBX program to search for homes or stop by and visit us at West USA Realty of Prescott 231 N Marina St Prescott. AZ 86301. (Each office is Independently owned and operated) #Prescottrealestate #Prescotthomes #Prescottland #Prescottvalleyrealestate #Prescottvalleyhomes #Prescottvalleyland #Chinovalleyrealestate #Chinovalleyhomes #Chinovalleyland #Arizonarealestate #Arizonahomes #realestate #homes #prescott #chinovalley #Prescottvalley #buyers

Comments

Post a Comment

Popular posts from this blog

West USA Realty of Prescott: Strengthening Community Bonds Through Real Estate and Charitable Engagement

-
  Cultivating Community Well-being with West USA Realty of Prescott At West USA Realty of Prescott , we do more than just facilitate real estate transactions. We are committed to enriching the lives of Prescott residents by actively engaging with Pony 4 Precious , a Prescott, Arizona non-profit organization dedicated to children's education and animal welfare, epitomizes our approach to corporate social responsibility. This partnership not only enriches our community but also underscores the role real estate can play in broader societal contexts. The Vision and Impact of West USA Realty of Prescott West USA Realty of Prescott has a storied history of integrity and community involvement. As one of the premier real estate firms in Prescott, Arizona, we are known not just for our professional excellence but also for our deep commitment to giving back to the community. We participate actively in local charities, attend events, and support various initiatives that benefit both people a...
Read more

Diving Deep into Today’s Biggest Buyer Concerns

-
Image
 Mike Eastwood Author-Chief Executive Officer of Bello Sol Inc/West USA Realty of Prescott states.  Last week,   Fannie Mae   released their   Home Purchase Sentiment Index   (HPSI). Though the survey showed 77% of respondents believe it’s a “good time to sell,” it also confirms what many are sensing: an increasing number of Americans believe it’s a “bad time to buy” a home. The percentage of those surveyed saying it’s a “bad time to buy” hit 64%, up from 56% last month and 38% last July. The latest HPSI explains: “Consumers also continued to cite high home prices as the predominant reason for their ongoing and significant divergence in sentiment toward homebuying and home-selling conditions.   While all surveyed segments have expressed greater negativity toward homebuying over the last few months, renters who say they are planning to buy a home in the next few years have demonstrated an even steeper decline in homebuying sentiment than homeowners. It’...
Read more

Unlocking Attainable Homeownership Strategies for Generation Z

-
  In the contemporary, fast-paced world, the aspiration of possessing a domicile stands as a fundamental element of the American Dream. It embodies constancy, self-sufficiency, and a sanctuary to call one's personal sanctuary. However, for Generation Z, affectionately known as "Zoomers," born between 1997 and 2012, the realization of this vision may seem increasingly formidable. In the face of surging mortgage interest rates and soaring residential property values, the voyage toward property ownership can resemble a steep ascent. Nevertheless, the accomplishment of procuring one's inaugural home remains entirely feasible, even within the current real estate milieu. This composition will delve into a spectrum of meticulously tailored approaches intended expressly for Generation Z to transmute the dream of homeownership into a tangible reality. Exploring Avenues of Down Payment Support Given the perpetual escalation in residential property prices, accumulating funds for...
Read more