A survey found that 63% of millennial homeowners regret buying their home. Lets go over this study, find out exactly where people are going wrong, and make sure this doesn’t happen to you. Add me on Instagram: GPStephan Merch: http://www.GrahamStephanStore.com/
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So lets get into these numbers: of the 63% of millennials who regretted their home purchase, these were their reasons:
18% said that maintenance and repairs were more costly than they anticipated.
12% said they bought too small of a house.
8% said they bought in a bad location.
7% didn’t think it was a good investment.
7% said the mortgage payment was too high.
6% didn’t get the best interest rate.
5% bought TOO BIG of a house.
First of all, 18% said maintenance and repairs were more costly than anticipated.
This can LARGELY be prevented by having an inspection done on the property before you purchase it, to understand EXACTLY what equipment is nearing the end of its life and might need to be replaced. This won’t uncover EVERYTHING, and sometimes things just happen outside of our control, but a good home inspection and home warranty plan could eliminate a SIGNIFICANT portion of unexpected repairs in the first few years.
Next, 12% bought too small of a house.
Home ownership is NOT meant to be something you buy, live in for a year, sell, and move on - I generally encourage everyone buying a home to do so with the expectation of holding on to it for at least 5-7 years. This means if you want a family soon, and you’ll need a larger home a year from now - then chances are, you’re better off renting.
Next, 8% bought in a bad location.
I can’t believe it. I apologize on behalf of all millennials out there. THIS IS ENTIRELY PREVENTABLE with even a mild amount of research. Spend a weekend driving around the area. Check out the neighborhood at different times of the day and night. Check crime reports and statistics. Speak to the neighbors or people walking their dogs or children. Ask them what they think of the area.
7% said they didn’t think it was a good investment.
The big flaw here is thinking that home ownership is automatically an investment when you buy something - because it isn’t. It absolutely CAN be a phenomenal investment, but this rarely ever happens by chance - in order for a home to be an investment, you must treat it like you’re running your own business. The value has to be there, the numbers have to make sense, and there must be upside in the deal…if you see you aren’t going to make money AHEAD OF TIME, don’t buy it.
Another 7% said the mortgage payment was too high.
When buying a house, it’s a good rule of thumb NEVER to max out what you can afford. This way, in the event of a job loss or reduction in pay, you aren’t locked in to a super high mortgage that was only affordable on the top range of your income. My recommendation is to buy a home that you can afford as though you’re paying it off in 15 years, BUT you get the 30-year mortgage because it gives you more flexibility with payments. This way, you’re not maxing yourself out and your mortgage won’t be too high…again, this one is easily preventable.
Then, 6% said they didn’t get the best interest rate.
When you buy a home, you’re encouraged to shop around and have lenders compete for your business. I’ve gotten HUGE reductions in my interest rate by getting pre-qualified between 3 lenders, then having each of them bid-down the other until eventually I’m left with the rock bottom rate. This is something that generally takes 1-4 days, and most of it is done over email - it’s fairly simple. But by doing this, I’m never left wondering whether or not I got the best interest rate.
And finally, 5% bought TOO BIG of a house.
So when you put all of this in perspective, here’s what I see:
About 85% of these regrets could’ve been avoided within one day of budgeting, planning, and investigating the property. The regrets people mention have MORE to do with the buyer’s lack of planning than it does from actually owning the home.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
70% OFF: The Real Estate Investing Blueprint
https://the-real-estate-agent-academy.teachable.com/p/the-real-estate-investing-blueprint/
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
So lets get into these numbers: of the 63% of millennials who regretted their home purchase, these were their reasons:
18% said that maintenance and repairs were more costly than they anticipated.
12% said they bought too small of a house.
8% said they bought in a bad location.
7% didn’t think it was a good investment.
7% said the mortgage payment was too high.
6% didn’t get the best interest rate.
5% bought TOO BIG of a house.
First of all, 18% said maintenance and repairs were more costly than anticipated.
This can LARGELY be prevented by having an inspection done on the property before you purchase it, to understand EXACTLY what equipment is nearing the end of its life and might need to be replaced. This won’t uncover EVERYTHING, and sometimes things just happen outside of our control, but a good home inspection and home warranty plan could eliminate a SIGNIFICANT portion of unexpected repairs in the first few years.
Next, 12% bought too small of a house.
Home ownership is NOT meant to be something you buy, live in for a year, sell, and move on - I generally encourage everyone buying a home to do so with the expectation of holding on to it for at least 5-7 years. This means if you want a family soon, and you’ll need a larger home a year from now - then chances are, you’re better off renting.
Next, 8% bought in a bad location.
I can’t believe it. I apologize on behalf of all millennials out there. THIS IS ENTIRELY PREVENTABLE with even a mild amount of research. Spend a weekend driving around the area. Check out the neighborhood at different times of the day and night. Check crime reports and statistics. Speak to the neighbors or people walking their dogs or children. Ask them what they think of the area.
7% said they didn’t think it was a good investment.
The big flaw here is thinking that home ownership is automatically an investment when you buy something - because it isn’t. It absolutely CAN be a phenomenal investment, but this rarely ever happens by chance - in order for a home to be an investment, you must treat it like you’re running your own business. The value has to be there, the numbers have to make sense, and there must be upside in the deal…if you see you aren’t going to make money AHEAD OF TIME, don’t buy it.
Another 7% said the mortgage payment was too high.
When buying a house, it’s a good rule of thumb NEVER to max out what you can afford. This way, in the event of a job loss or reduction in pay, you aren’t locked in to a super high mortgage that was only affordable on the top range of your income. My recommendation is to buy a home that you can afford as though you’re paying it off in 15 years, BUT you get the 30-year mortgage because it gives you more flexibility with payments. This way, you’re not maxing yourself out and your mortgage won’t be too high…again, this one is easily preventable.
Then, 6% said they didn’t get the best interest rate.
When you buy a home, you’re encouraged to shop around and have lenders compete for your business. I’ve gotten HUGE reductions in my interest rate by getting pre-qualified between 3 lenders, then having each of them bid-down the other until eventually I’m left with the rock bottom rate. This is something that generally takes 1-4 days, and most of it is done over email - it’s fairly simple. But by doing this, I’m never left wondering whether or not I got the best interest rate.
And finally, 5% bought TOO BIG of a house.
So when you put all of this in perspective, here’s what I see:
About 85% of these regrets could’ve been avoided within one day of budgeting, planning, and investigating the property. The regrets people mention have MORE to do with the buyer’s lack of planning than it does from actually owning the home.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
I worked in real estate, I get what you’re saying. But I think this poll is more a reflection of the disadvantages millennials have in terms of cost of living, income-to-housing ratio, etc. that previous generations did not experience. Until recently, I lived in a metro area, and few to no millennials I knew were homeowners, because it just felt impossible. So for those who do choose to buy, find themselves often times regretting it.
The people answering this poll sound pretty dumb
I regretted buying one townhouse and it was because of a common problem that is difficult to anticipate: bad neighbors. In my case, it was neighbors that were active and noisy far too early in the morning. They weren't willing to change their behavior, so I sold and moved out after only three years.
Anh hát bằng cả trái tim bảo sao mà cứ ngọt lịm như vậy. Bài nào cũng cảm xúc luôn
I really really hope your gen listens to you, I am 58 and they don't listen to me, I get attitude like you think you know everything, no I am trying to help you make wise an affordable choices, you nailed all this and was surprised about the neighbor check thing, I have said that as well, look at how people keep their yards, drive around after school, after work, on the weekends and when no ones out, how many keep their porch lights on how many have metal security on their doors an windows, check the crime rate dont be afraid to get out an talk to neighbors eapecially the older ones they see all. Def shop home warranties they will be a saving grace, be aware of the exclusions, negotiate where you can even where you can't never hurts to try. The worst they can say is no right. So much good advise and constructive criticism. Young people listen take time to think of all the social media you do and gaming and research on things that honestly are not important to you life here an now use that energry and time to do what he is saying. Good luck Gotta add this if you are a couple be on the same page do not settle for what only one wants because the other will be unhappy and it fails from jump
Location, location, and location
Good job breaking down the results Graham!
Lol. I don't regret it at all. Bought my home in 2017 and it's almost doubled in value. And I live in the beautiful state of Florida/
Some people like myself are so poor that we can't afford a home (in a city) unless it's in a bad location.
There's soo much pressure for millennials to buy a house but it's really complicated and takes a lot of planning and knowledge. Plus money of course.
calm down its annoying
The big problem is renting you pay the owner more than his mortgage and then he uses that extra money for his own profit/ repairs owning a home your making your own profit
Makes sense millennials love to rent!
I understand owning a house is beneficial and probably needed if you have a family with kids. I’d rather rent cheaply and reinvest all extra money in the stock market over 30 years. Yes, rent will be much higher in 30 years vs a 30 fixed rate mortgage, but then you factor inflation with home maintenance, taking time to fix home, not having the flexibility of renting, etc. I feel like houses are very complex vs renting. Again I’ll just rent and reinvest all my extra money. And when the toilet breaks in my apartment, I’ll call my landlord to come and fix it.
Most Graham's videos: "Buy real estate and rent it, it's the quickest way to wealth." This video: It's not the quickest way to wealth and you could easily be underwater. Lol I also find it funny that Kevin says live in your first property short term and house hack to buy the second one then live in it and rent the first, then Graham's like live in it longer than short term.
Buying a home will become obsolete soon! It takes too long and it requires a lifelong financial commitment for unstable jobs, constant movement, shallow relationships and therefore mostly single people eating avocado on toast. Companies grow no roots either and staff is made redundant and replaced more frequently. There is nothing about family, home and long term life in 2021onwards, things have to just keep moving in the name of profit; this is why buying a home to live in long term or have a family is a tradition of the past!
Millennial don't need to buy homes unless they can pay them off.
Comment for the algorithm
It sounds like a lot of the issues are just prevented by having more money. I would like to do that please
I think a lot of these reasons boil down to a much bigger issue (which you sorta touch on, but don’t come right out and say), and that is that prices are too damn high! Especially for starter homes that millennials can afford. Millennials could manage the cost of home maintenance but these mortgages are too high, they end up buying houses that are too small because it’s the only house they can afford, they end up buying in crappy areas because they can’t afford the good areas closer to town…etc. These are all issues that millennials are now facing that previous generations didn’t have to face before, because there used to be an adequate supply of housing, especially starter homes. Not anymore. Now our generation is having to put down an offer over asking price the day something hits the market in order to even have a chance at getting a home…that doesn’t exactly leave much time to think things through. It’s easy for a millionaire to sit back and not understand how people could regret their home. You literally have YOUR PICK of the entire market. The rest of us are just desperately trying to find anything decent even close to our budget…
This may seem kind of obvious in hindsight but I would say if you are a millennial and didn't take advantage of the housing crisis to buy your first home you seriously missed the boat big time. Sure, interest rates may be at an all time low right now -but home prices are so over inflated that it's ridiculous.
I just purchased my first home two weeks ago and this video reassured me that I’m not apart of that 63%.
Your watch strap could fit better.
I’m starting to hate reading comments about school doesn’t teach about the real world because now more then ever teachers (good ones) are realizing this and at least teaching students once a week about the real world. If it would be how to pay taxes or how to settle on a mortgage or how to buy a car.
If ur school didn’t have teachers who cared bout students then it wasn’t your fault but the wack ass school.
I like to poop at open houses 🤫
I’ve rented my entire life (single no kids) and bc of that I have so much more money saved up and put into retirement from saving so much money that would have gone into a house. Buying isn’t always better.
8% bought house in bad location, i get that because my friend recently bought a house for a good deal in a okay neighborhood. however they quickly realized its in a food desert and the closest Trader Joe’s / Whole Foods is a 30 min drive…. though they know eventually there will be more grocery options close by in the next couple of years
If your house is too small all you got to do is add on. 🤷🏿♂️
I disagree with the conversation on bad location, I know that a lot of people buy houses from other states without Visiting the neighborhoods
If you buy a house to live in, it's not an investment it's a purchase. If you buy a house to rent out, it's an investment. With that said you can make money off your purchase and it can be a good purchase if you in fact do your research upfront and buy the wrong property. If you don't know what to buy, rent instead until figure it out. There's no shame in renting as long as you're putting money into other investments – business / stocks and retirement savings, etc.
“Homeownership” is a con pushed by bankers. The “American dream” is a scam. I don’t work at a brick and mortar business, don’t own a car and refuse to by real estate.
i dont think they regret buying the house. they regret that particular house
Mortgage broker here. Seriously shop that loan around between two-three lenders. Soooo many people are lazy and refuse to do this. If your credit is good, your loan amount is a bit larger, and you’re easy to work with, then you will get a steal of a deal. But YOU HAVE TO BE EASY TO WORK WITH. Otherwise don’t waste our time.
A home is only an asset if you own it outright
Why is he recommending a home warranty?? That is a nightmare. The repairs are more expensive in the long run and you have to pick from only their list of hvac companies, who are shady!! It’s a scam. Not worth it
Which three lenders did you shop if you don’t mind me asking?