Millennials are now truly understanding the pain of increasing interest rates. The mortgage payments go up!
Nearly half of all homeowners have buyer’s remorse, according to a new survey from Bankrate. While 44% of all homeowners have regrets, that number swells to 63% for millennial homeowners. It’s the highest proportion of any generation, and nearly double that of baby boomers – 35% of those aged 55-73 regret buying a home.
I was doing a house search online a few years ago. I narrowed the search to two houses that were roughly the same size but about one kilometer apart. The house which was closer to grocery stores and bus stops was twice as expensive. That is a staggering premium in a time when average wages are stagnant.
Homeowners also say that bad location, high mortgage payments, and buying the wrong size home can cause them to think differently about their purchase.
Millennials should think differently before they make the biggest purchase decision of their life. Renting for a few years can definitely be a sensible option.