For years, real estate has been viewed as an excellent investment. It can generate ongoing passive income and be a long-term investment as the value of land increases over time. What was once a cheaper piece of land five decades ago can now cost millions of dollars. Louise Payne arguably one to the top real estate professionals in Whangarei has many examples she could share.
While the older generation has always seen property as an investment, there is a demographic that tend to move back from real estate—the millennials. What do millennials really want in a home? Can we guess what percentage of home buyers in Whangarei are millennials? Maybe, it’s hard to guess, but one thing’s sure — fewer millennials will own homes than their parents.
There may be a hundred reasons why millennials could not decide on whether to go for real estate as readily as their elders. It could be because millennials typically prefer to delay marriage and are increasingly staying with their parents. Others would argue this is solely because of the alarming increase in home prices. Another reason could be because student loan debt is given more priority. Nonetheless, this does not mean millennials are not that open to investing in real estate. They have a different mindset and process when it comes to making a considerable investment and a differing set of challenges to their parents before them.
Anyone considering real estate should wisely decide whether to dive into real estate or not by considering the following:
- Financial Standing
Unlike their parents, millennials have to bear the extra weight of paying off student loans and other debts. In January 2020, a woman was arrested at Auckland International Airport for her outstanding debt. The woman was said to be arrested at the border before she could return to her home overseas. Although Inland Revenue refused to provide more information for secrecy obligation, the arrest has shown that the burden of unpaid student loan debt has reached a “crisis level.”
In addition to that, the National Association of Realtors (NAR) has reported that the two expenses that delayed saving for a deposit were car loans and credit card debt. If you’re someone who has outstanding debt, take the time to sit down and calculate your expenses. Although the real estate interests may seem small at first, tidying your financial standing before setting your heart on a property and seeking a mortgage in principle is the best first step.
- Know What You’re Looking for in a House.
We all have different needs from our Whangarei Homes. Some may be looking for a long-term property, while others will be looking for something to rent out. If you’re expecting to have a big family, you must think long and hard about the number of rooms you’ll be needing. Accordingly to research, location, accessibility, and affordability are among the top factors that millennials look for in acquiring property. It is important to determine your “must-haves” to get that peace of mind when you find the perfect place at the end of the day.
- Do Your Research
When you’ve understood what you’re looking for in a house and created a wish list for the “perfect” home, the next step is to look into what’s available in the market. Although the pandemic has increased the number of sellers in the market, it is still nothing compared to the increased demand and acute housing shortage New Zealand is facing. In the short term at least we all face rising home prices. It is essential to understand the competition in the area that you are looking to purchase a home in.
Besides the budget, you have to ensure that the NZ property you’re looking to buy or invest in is within a safe neighborhood and good accessibility. Don’t be afraid to ask lots of questions to your whangarei real estate agent and never sign anything you do not understand. Most importantly, listen to your gut when making a big financial decision.
Louise Payne is a Whangarei Real Estate Agent with 15+ years of experience in the industry. With a strong track record and unrivalled knowledge across Whangarei, including Kamo, Tikipunga, and Maunu.