Homebuyer Regrets: 5 Reasons Millennials Wish They Hadn’t Bought a Home

homebuyer regrets

There are a lot of reasons why you might have homebuyer regrets. Although owning a home is one of the hallmarks of success for the middle class, it’s not without its problems. Millennials, in particular, have discovered that their financial situation is shaky. As a result, more than half of millennial home owners have homebuyer regrets. Here are five key reasons:

1. The Great Recession

Research indicates that millennials are considerably more likely to have homebuyer regrets than their Baby Boomer counterparts. The younger Gen Z has plans to buy homes young. So what’s going on with millennials? The great recession is likely a huge part of the problem.

This generation was already working, but not very far along in their careers, when The Great Recession struck. As a result, they were financially hit hard. If they’d already bought a home, they likely have found themselves struggling to make mortgage payments. The rest of their financial lives has just been too precarious.

2. They Didn’t Pay Enough Down

More than two thirds of millennials paid less than 20% for the down payment on their homes. This means two things:

  • They still owe a lot of money on their home mortgages.
  • Their mortgage payments are higher than if they’d paid more down.

Both of these things have led to some big homebuyer regrets.

3. They Didn’t Plan for So Many Ongoing Home Costs

Buying a home is just the first step of the home ownership process. You also have to keep your home maintained, which costs money. You might need renovations. Additionally, you may have to use your homeowner’s insurance, which can lead to greater rates there over time. Many millennials seem to have failed to plan for these costs.

“Millennials are planning 49% more renovations than Baby Boomers over the next five years, but they’re also three times as likely to use a personal loan and twice as likely to use a credit card to finance their renovations than Baby Boomers.”

Almost half of them were surprised at the cost of maintaining their homes. And they were four times as likely as Baby Boomers to use their homeowner’s insurance in the past year. So, they are spending more money on maintaining and renovating their homes. Yet they don’t actually have that money, which means that they’re paying high interest rates on loans to cover those costs. It’s overwhelming.

4. Overall, Their Mortgages Are Too High

More than anything else, millennial homeowners resent how much money they pay towards their mortgages. Maybe they aren’t earning enough as they still try to recover from The Great Recession. Perhaps they have too many other costs in their lives, including children and exorbitant student loans. Maybe the choices they’ve made with down payments, mortgage companies, and refinancing have left them struggling financially. Whatever the reason, the number one cause of homebuyer regrets among millennials is the high cost of their mortgage.

5. They’re Still New to Home Ownership

More than 60% of millennials have only owned their homes for five years or less. Those first years are hard. You’re adjusting to paying a mortgage. You’re learning all that it takes to pay for and maintain a home. You may not be used to the higher energy bills and property taxes as compared to when you were renting. Perhaps, as time goes on, these same millennials will have fewer homebuyer regrets because they’ll have adjusted to what it means to own their homes.

Read More:

Think Your Credit Score Doesn’t Matter in Retirement? Think Again.

credit score

You have battled with your credit score your whole life. You wanted a good score so that you can could get the best loans, especially for your home mortgage. Finally, you’ve reached retirement, and you have it in mind that you can rest easy. You have your mortgage, you are done taking out loans for education, so you don’t have to think about your credit score any more right? Wrong. Your credit score still maters in retirement.

You Need to Watch Your Money Carefully in Retirement

Unless you happen to retire with extreme wealth at your disposal, you need to be frugal after retirement. You need to budget. After all, you don’t have the kind of income coming in that you once did. You aren’t going to get raises and other windfalls. You have to make do with what you have.

Therefore, it’s really important that you watch your money carefully. If you have bad credit, then you put yourself at risk. What if something happens and you need to refinance your home? Or what if you need to take out an emergency loan? So many things can go awry in life. Medical expenses, natural disasters, the needs of adult children … you just might need to get credit or a loan again even after you’ve retired.

If you don’t have good credit, then you’re going to end up with a loan that has terrible terms (if you can get a loan at all). A bad credit score means you’ll have a higher interest rate, which in turns means that you’ll have higher monthly repayment bills. If you’re trying to budget in retirement then you can’t afford to waste money on those exorbitant fees. If you maintain a good credit score in retirement then you don’t have to worry about that so much.

You Probably Have More Bills in Retirement Than You Anticipated

People like to paint a rosy picture of retirement. You’ve worked hard your entire life, so now you can rest. You can take the money that you set aside and enjoy your sunset years. However, this financially lovely picture simply isn’t the reality for many Americans reaching retirement age today.

Baby boomers who have retired or about to retire have much higher bills than they might have expected. In fact, many still owe on their homes, either due to an original mortgage or to refinancing over the years. Additionally, older people increasingly have high levels of credit card debt to their names. Some people even still have student loan debt when they retire!

If you have these types of outstanding debt, then you really need to make sure that you have a good credit score in retirement. You should work to improve the score as much as possible. You can do that through debt repayment, increased credit lines, disputing incorrect credit report information, etc. Once you have boosted your score as much as possible, you can then use that good credit score to get a great rate on a consolidation loan. This will allow you to repay that debt as quickly as possible so that it doesn’t hang over you throughout your entire retirement.

Plus more and more Americans retire but then start a post-retirement business of their own. If you’d like to start a new business, then you might need a business loan. If you have a good credit score in retirement, it’ll be significantly easier to get that loan.

Read More:

How to Write an Essay Introduction for Various Essay Formats

An introduction is one of the essential components in essay writing. It is the section that transports a reader from their current world into the writer’s mind. The way a student writer does this determines how convincing their essay turns out.  It is not an easy task but you can find essay writer cheap help online from essay writing platforms. This article also highlights the importance of a good essay introduction and offers tips on writing one.

Importance of an essay introduction

An introduction creates the first impression and lays a foundation for the rest of the paper. It explains the context of the essay and gives readers and an idea of what to expect. To write a winning essay in any format, you have to craft a powerful introduction that not only grabs the attention of a reader but also validates the essay.  A reader can tell if the essay is worth reading by just looking at the introduction. This makes it necessary to invest time in this section for any essay type you wish to write.

Techniques for Essay Introductions

You can use the following techniques to compose a captivating essay introduction:

  • A thought-provoking rhetorical question
  • Statistics on the subject matter
  • An anecdote to grab attention
  • An interesting fact related to the topic

While every introduction has to captivate the reader, you must consider the type of essay when crafting this paragraph. Your wording and flow have to correspond to the format of the essay provided. For instance:

  1. Argumentative essay: In an argumentative essay, your goal is to present an argument and win over the reader. In the introduction, you have to state your stand and present your argument before going to the supporting facts. You should give a thesis statement on your essay to prepare the reader for the arguments in the rest of the paper.
  2. Persuasive essay: Like the argumentative essay, a persuasive paper is about moving readers to side with your opinion. From the start, you have to state your stand openly and lay a foundation for the paper. Your attitude towards the subject must come out clearly to persuade the reader.

 

Image 1: A student writing an essay. A winning introduction leads

  1. Compare and Contrast Essay: In this essay format, you have to present two subjects which you plan to compare or contrast. You should also show the importance of discussing the similarities or differences of the mentioned subjects to capture the attention of a reader.
  2. Narrative essay: In this essay type, you are about to tell a story and you should set a suspense-ridden foundation. A good narrative essay leaves the reader yearning for more action and you should be careful not to lay everything bare at this point.
  3. Expository essay: In this type of essay, you give an estimation of the subject from your point of view. In the introduction, you have to show the importance of the subject and the need for an exposition of the subject. You must convince the reader that you have enough knowledge of the subject to assess the subject.

Go on and craft a winning introduction for your essay using these tips.