dearJulius.com

Millennials plan to skip manicures, movies to save for a home

© Hero Images/Getty Images Millennial couple packing up home

By Natalie Campisi, Bankrate

Manicures, the new Marvel movie and other recreational spending are a few things millennials are willing to forfeit in order to become homeowners, a new survey by Chase shows.

The survey, Readying to Buy: First-Time Homebuyers Share Motivation & Willingness to Purchase, gauged how driven millennials are to own a home. Some 1,000 people, aged 22 to 38, responded to the national survey, which showed that 70 percent of would-be first-time homebuyers will cut spending on spa days, shopping and going to the movies in exchange for purchasing a home within the next year.

Women were more likely than men to tighten their belts when it came to restaurant spending, with 71 percent of women stating they would cut back on eating out to once per week compared with 64 percent of men.

Millennials now make up the largest group of homebuyers as their parents (the baby boomers) downsize and retire. But, according to the Urban Institute, the homeownership rate among millennials ages 25 to 34 is some 8 percentage points lower than that of previous generations (Gen X and baby boomers) in the same age group.


Millennials willing to sacrifice for a home

Sacrificing luxuries, even small ones like a movie ticket, to save up for a down payment is something people have to consider as home prices continue to rise — albeit more slowly — outpacing recent wage growth. Although there are low down payment mortgage options, those loans usually come with private mortgage insurance, or PMI, requirements when the down payment is less than 20 percent of the sales price.

PMI can cost between 0.5 to 1 percent of the total loan amount on an annual basis. For a $250,000 mortgage with a PMI of 1 percent, homeowners will pay $2,500 per year, which is about $208 per month. This means they can qualify to buy that much less house.

However, saving that much can be challenging for many young buyers who are also juggling debt and dealing with stagnant wages. To make sure homeownership is affordable and sustainable, consider buying below your means, says Taylor Kovar CEO at Kovar Capital.

"I have found that most millennials are jumping into huge debt by purchasing houses like the ones they grew up in — ones that it took their parents 20 years or more of work to afford," Kovar says. "I always tell homebuyers that they need to focus on a few small non-negotiables when looking for a first house but to not go crazy thinking they need all of the square footage that their parents have."

Despite the high cost of housing in many areas across the country, 93 percent of respondents said they were excited about buying a house, but only 52 percent said they were financially ready.

For would-be homebuyers who are unsure of how homeownership fits into their finances, experts recommend working out a budget.

Consider costs like property insurance, repairs, HOA fees and taxes when you crunch the numbers. Also, don't rely on the bank to tell you how much you can afford. Just because you qualify for a certain amount, doesn't mean you should get a mortgage for the full amount, Kovar says.

It's better to leave room in your housing budget in case emergencies arise. There's always time to upsize later as your income grows.


Consider your needs, make a budget and buy wisely

Begin the homebuying process by getting preapproved for a loan, that will help you determine how much you're eligible for. If you don't qualify for the amount you hoped for, you can wait until you improve your credit score or income to apply for a mortgage that makes more sense for your needs.

"With higher levels of debt compared to other cohorts, millennials need to be extra sure that the home mortgage payment they are taking on fits in with their budget,” says John Graff, broker at Ashby & Graff Real Estate in Los Angeles. “Obtaining a full loan preapproval (as opposed to a more simplistic pre-qualification) should be a top priority for millennial home buyers so they can get an idea of exactly what they can comfortably afford."

Before you enter into decades of mortgage payments, assess your needs and make sure what you buy can meet them. If this is a starter home, then you might want to identify features that have high resale values, like places in trendy neighborhoods, says Susan Abrams, a broker at Warburg Realty.

She recommends that buyers choose an experienced broker who is knowledgeable about the neighborhood. These are assets that can make a huge difference in the buying process.

"Millennial buyers should do their homework and research price appreciation year-over-year in areas they are considering," Abrams says.

Another factor buyers should consider is how long they will stay in one place. If there's a good chance you'll move in a year or two, renting is likely the better option. The reason for this is that buying and selling costs are so expensive that you'll likely lose money if you don't wait for the value to appreciate enough to exceed those expenses. That usually takes five to seven years.

"Millennials should be particularly mindful of how long they intend to stay in a particular area before plunking down the time, effort, and money on buying a home,” Graff says. “Real estate is best as a long-term investment. If you can't realistically commit to staying in home for at least a few years then it might not be the best buy."

While premium locations cost more, they might be worth the extra money — especially if you want to resell the house in the next few years, says Josh Rubin, a real estate agent at Douglas Elliman in New York.

One way to afford the pricier zip code is to buy a smaller house in a neighborhood with good schools, better transit and close to sought-after features (like shopping, parks and restaurants) rather than getting a bigger house in a less-desirable location.

"Buyers should focus on location first. The adjacent area can seem alluring with its lower prices, but consider proximity to transit, neighborhood amenities and good quality schools when considering whether the home you’re considering buying is truly a good match,” says Rubin. “Some might think that these don’t matter because it doesn’t affect them. While that may be true, you want the house to be marketable to prospective buyers when you’re selling."



Made with in NYC
Name

4th of July,7,Abu Dhabi,2,Accessories,84,Acne,3,Adventure,32,Adventure Travel,638,Advice,283,Africa,26,African Food,2,AIDS,1,Air Travel,150,Alabama,5,Alaska,20,Alberta,1,Alcohol,4,All About Beer,1,All About Wine,2,Alternative Treatments,4,America,77,American Food,5,Amsterdam,2,Android,11,Anguilla,3,Animal,367,Animal Health,1,Animals,69,Anniversary,1,Anniversary Cake,11,Antarctica,7,Antigua,3,Appetizers & Snacks,2,Apple,11,Apps,16,Argentina,15,Arizona,19,Arkansas,2,Armenia,1,Asia Travel,47,Asian Food,7,Asthma,4,Athens,3,Austin,8,Australia,92,Australian Food,1,Austria,13,Autism,1,Auto Insurance,1,Auto Show,52,Autos,211,Azerbaijan,1,Baby Shower Cake,29,Back Pain,25,Bahamas,13,Balance Work & Life,50,Banana Cakes,2,Bangladesh,8,Barn Finds,1,Bathroom,43,Be a Better Manager,33,Beach Travel,58,Beards and Shaving,29,Beef Recipes,7,Belarus,1,Belgium,9,Belize,15,Bermuda,5,Best Products,1,Better Partner,40,Beverages,3,Bhutan,9,Bills to Pay,35,Birds,4,Birth Control,1,Birthday Cake,109,Blue Lagoon,2,Blueberry Cake,11,Bolivia,3,Books,2,Botswana,3,Brazil,38,Bread,11,Breads,1,Break Room,12,Breakfast & Brunch,6,Breakup,19,Breakups,3,Broken Hearts,5,Brownie,8,Brunei,1,Budget Travel,97,Bundt Cake,30,Business Skills,102,Butter Cake,52,Buying,1,By Region,3,Cake Decorating,113,Cakes,54,California,109,Cambodia,4,Camera,6,Canada,80,Cancer,73,Car Shows,1,Car Tech,2,Caramel Cake,5,Career,86,Career Advice,298,Career Choice,125,Career Growth,180,Career Paths,24,Career Problem,8,Caribbean,45,Caribbean & Mexico,5,Carrot Cake,22,Cats,49,Celebrity,17,Celebs,1,Ceremonial Cake,9,Certified Pre-Owned Vehicles,1,Cheese Recipes,4,Cheesecakes,251,Chicago,7,Chicago Auto Show,2,Chicken Recipes,14,Chiffon Cake,5,Children's Health,21,Chile,7,China,21,Chocolate Cake,395,Christmas,35,Christmas Cake,23,Christmas Travel,14,Classic Cars,39,Cleaning Tips,144,Clinical Practice,1,Clothes,1,Cocktail Recipes,2,Coconut Cake,21,Coffee,1,Coffee Cake,15,Coliseum,1,Colombia,18,Colorado,32,Columbia,3,Communication,2,Companies,2,Compassion,2,Computing,16,Connecticut,4,Consumer Electronics Show,5,Cookies,10,Cooking,8,Corporate Travel,2,Costa Rica,13,Country Travel,249,Creative,309,Creative Idea,22,Creative Ideas,37,Croatia,15,Cruiser Travel,16,Cuba,18,Cultural Travel,66,Cupcake,322,Customs & Classics,2,Czech Republic,6,D.C.,2,Dandruff,1,Dating,18,Dating Advice,73,Dating Advice for Women,22,Dating Tips,13,Decor,23,Decorating Ideas,181,Delaware,1,Demotivational,636,Denmark,12,Dental Health,26,Dentistry,1,Depression,24,Desert Travel,1,Desserts,3,Detroit Auto Show,4,Diabetes,25,Diet,131,Dining Out,3,Dinner,14,Disease,116,Divorce,15,DIY,112,DIY Fashion,31,Dogs,156,Doughnuts,5,Dress,23,Drink,27,Drinks,1,Drinks & Cocktails,4,Driving,3,Drugs,3,Dubai,15,Ears,2,East Africa,4,Easter,1,Easter Island,1,Easter Travel,1,Eco Travel,18,Ecuador,7,Education,87,Eggs,3,Egypt,4,Electronics,4,Electronics and Gadgets,2,Emirates,1,England,13,Entertainment,148,Enthusiasts,131,Entrepreneurship,40,Estonia,2,Eswatini,1,Ethiopia,2,Europe,110,European Food,8,Exercises,51,Eye Health,28,Facts,284,Fall Travel,43,Family,16,Family Travel,128,Faroe Island,1,Fashion,126,Fashion for Kids,2,Fashion for Man,12,Fashion for Woman,31,Fat Loss,91,Father's Day Cake,4,Father's Day Travel,1,Featured,207,Features,1130,Festival Travel,25,Fiji,6,Finance,4,Finland,16,Fish & Seafood,13,Fitness,746,Fitness & Exercise,219,Florida,69,Food,136,Food and Drink,14,France,37,Frankfurt Motor Show,2,Free Travel,3,French,6,French Polynesia,5,Friendship,40,Fruit & Veggie Recipes,8,Fruitcake,70,Fruits,4,Fuel Economy,1,Funny,546,Gadgets,31,Galapagos,3,Games,12,Garden,24,Gardening,276,Gearheads,1,General,7,Geneva Motor Show,3,Georgia,14,Germany,18,Get Healthy,63,Ghana,2,Girlfriend Grooming,10,Google,15,Graduation Cake,2,Gratitude,11,Greece,37,Green Living,5,Greenland,1,Grooming,89,Guatemala,2,Hair,52,Hair Care,22,Hairstyle,65,Halloween,29,Halloween Cake,12,Halloween Travel,9,Happiness,19,Hawaii,53,Hayden Panettiere,1,Headache,22,Health,481,Health & Fitness,300,Health Care,466,Health Insurance,1,Healthcare Tech,6,Healthy,12,Healthy Eating,186,Healthy Habits,159,Healthy Living,179,Hearing,1,Hiking Travel,63,HIV/AIDS,4,Holiday Travel,28,Holland,1,home,31,Home & Garden,205,Home and Decor,484,Honeymoon Travel,128,Hong Kong,13,Horoscope,31,Hot Rod Power Tour,1,Hotels,71,Housekeeper,8,Hungary,3,Ice cream Cake,21,Iceland,41,Idaho,4,Ideas,11,Illinois,13,Imports,1,Impress a Girl,20,Impress Women,4,Independence Day Travel,1,India,36,Indiana,5,Indonesia,13,Indoor Gardening,69,Industry,5,Inspiration,58,Insurance,5,Internet,19,Internship,8,Interview Skills,37,Investing,12,iPad,2,iPhone,6,Iraq,1,Ireland,36,Island,60,islands,2,Israel,9,Italy,56,Jamaica,8,Japan,44,Jealousy,2,Job Search,47,Jordan,6,Just For Fun,2,Kansas,6,Kentucky,2,Kenya,2,Kids & Pets,10,Kitchen,67,Koala,1,Korea,2,Kyrgyzstan,1,Lamb,2,Laptops,4,Latin America,3,Latin American Food,1,Latvia,1,Laundry,6,Layer Cake,95,Leadership,44,Legs,1,Lemon Cake,18,Life,1,Life Hacks,244,LifeStyle,741,Lithuania,2,London,24,Long Distance Relationship,24,Los Angeles Auto Show,14,Louisiana,9,Love,130,Lowa,4,Lunch,5,Luxembourg,1,Luxury Travel,35,Maine,6,Maintenance,3,Makeup & Beauty,11,Malaysia,1,Maldives,15,Malta,2,Mango Cake,3,Marketing,10,Markets,11,Marriage,97,Marshmallow,3,Maryland,6,Massachusetts,9,Massage,5,Mauritius,6,Meditation,29,Men & Women,18,Men's Health,14,Mental Health,294,Mexico,74,Miami,13,Michigan,5,Microsoft,6,Middle Eastern Food,2,Mind,3,Mississippi,2,Missouri,7,Mobile,22,Moldova,1,Monaco,1,Money,2,Money & Career,21,Monkey,1,Montana,12,Morocco,20,Mother's Day Travel,1,Motivation,2,Motorcycles,106,Motorsports,2,Mousse,2,Muffins,9,Mug Cake,14,Multiple Sclerosis,1,Muscle Cars,4,Muscle Cars & Hot Rods,3,Muscle Gain,2,Myanmar,9,Namibia,4,Nature,4,Nature Travel,102,Nepal,6,Netherlands,11,Nevada,23,Nevis,1,New Bikes,2,New Car Deals,1,New England,5,New Jersey,2,New Mexico,6,New Year Fashion,6,New Year's Day Travel,6,New York,55,New York Auto Show,3,New York City,20,New Zealand,47,Newfoundland,1,Newlyweds,4,News,334,Nicaragua,2,North America,11,North Carolina,6,North Dakota,1,North Ireland,1,Northern Ireland,1,Norway,20,Nutrition,447,Occasional Travel,9,Oceania,1,Offbeat,618,Ohio,6,Oman,5,Online Date Tips,2,Operating Systems,2,Oral,4,Oregon,10,outdoor,3,Ownership,61,Pain,24,Painting,16,Pakistan,2,Panama,5,Pancake,19,Panda,1,Panna Cotta,3,Paraguay,1,Parenting,370,Paris,23,Paris Motor Show,4,Pasta,2,Pastry,7,Pebble Beach Concours d'Elegance,2,Penguin,4,Pennsylvania,10,Personal Finance,164,Peru,21,Pets,147,Phoenix,1,Photo Feature,1,Pie,27,Plum Cake,1,Poke Cake,10,Poland,3,Popular Ingredients,26,Pork Recipes,7,Portable Media,14,Portugal,21,Pound Cake,55,Prague,1,Pregnancy,72,Premium,1,Printer,2,Protein Bars,1,Psychology,1,Pudding,9,Puerto Rico,7,Pumpkin Cake,45,Qatar,6,Quick & Easy Recipes,11,Real Estate,72,Recalls,4,Recipe,1097,Recipes,52,Recipes & Meal Ideas,3,Recipes By Course,5,Relationship,167,Relationship Advice,180,Relationship Advice for Men,23,Relationship Advice for Women,27,Relationship Problems,58,Relationship Secrets,14,Relationships,137,Research,94,Resort,11,Restaurants & News,13,Resume,11,Retirement,10,Reviews,1,Rhode Island,2,River Travel,2,Road Trips,49,Romania,4,Romantic Getaways,15,Rome,5,Russia,16,Safety,5,Saint Lucia,1,Saint Patrick's Day Travel,1,Salad,6,San Miguel de Allende,1,Scotland,10,Seasonal,56,Seasonal Travel,59,Security,9,Self Help,14,Self-Care,3,SEMA Show,5,Senior Relationship,2,Sex,7,Sexual Health,19,Shanghai Auto Show,7,Shaving,1,Sheet Cake,20,Shirt,4,Shoes,1,Shopping,10,Shots & Shooters,1,Side Dishes,4,Sightseeing Tours,2,Singapore,18,Ski Resorts,10,Skin Care,47,Sleep,62,Slovenia,6,Small Business,163,Smartphone,28,Smile,1,Smoothies & Juices,3,Snacks,1,Social Media,44,Solo Travel,24,Solomon Islands,1,Somoa,1,Soth Africa,1,South Africa,14,South America,3,South Carolina,4,South Dakota,5,South Korea,3,South Pacific,2,Space Travel,14,Spain,33,Special,46,Special Cake,579,Special Feature,113,Special Features,485,Sponge Cake,15,Sports and Exotics,4,Sports Cars,8,Spring Travel,23,Squirrel,1,Sri Lanka,6,Strawberry Cake,22,Stress Relief,35,Stroke,2,Student Travel,1,Style Guide,25,Summer Travel,53,Summer Vacation,8,Supercars,10,Sweden,19,Swiss Alps,1,Switzerland,20,Tahiti,1,Taiwan,3,Tanzania,1,Tarts,12,Taxes,7,Teas,2,Tech,89,Tech Advice,12,Tech Education,7,Tech Hacks,19,Tech Updates,2,Technology,12,Teen Advice,4,Teeth,5,Tennessee,6,Texas,57,Thailand,31,Thanksgiving Cake,4,Thanksgiving Travel,5,Therapy,3,Things to Do,165,Tibet,2,Tips,264,Tips & Tricks,6,Tokyo Motor Show,2,Tools & Skills,16,Top Stocks,1,Traditional Cake,4,Train Travel,23,Training,1,Transportation,22,Travel,205,Travel Advice,64,Travel Apps,1,Travel Guide,40,Travel Tips,149,Trends,7,Trucks,1,True Health,5,Tunisia,2,Turkey,10,Turkish,1,Tuscany,1,TV,2,UAE,10,UK,40,Ukrine,1,Understanding Women,28,Urban Travel,47,Uruguary,1,USA,629,Utah,12,Uzbekistan,1,Vacation Travel,245,Valentine's Day Cake,7,Valentine's Day Travel,1,Vanilla Cake,17,Vegetables,3,Vehicle Travel,2,Venezuela,1,Vermont,4,Victoria Falls,1,Vietnam,5,Virginia,5,Waffles,3,Washington,15,Washington DC,20,Web & Social,17,Wedding,14,Wedding Cake,549,Weddings,60,Weddings Travel,4,Weight Gain,23,Weight Loss,468,Weird,172,Wellness,75,West Indies,2,Wi-Fi,2,Wildlife Travel,13,Winter Travel,56,Wisconsin,5,Women Lifestyle,23,Women's,65,Women's Health,173,Work Environment,77,Workouts,81,Worldwide,155,Wyoming,2,xxx,1,Yemen,1,Yoga,58,YouTube,3,Zadar,2,Zambia,3,Zimbabwe,4,
ltr
item
Home Magazine: Millennials plan to skip manicures, movies to save for a home
Millennials plan to skip manicures, movies to save for a home
https://1.bp.blogspot.com/-Z9DTVu7ECLE/XO-syFGRJYI/AAAAAAAAkYE/78Cvl8io-kIAS22smTOGsBmtvSyMmEf-gCLcBGAs/s1600/Millennials%2Bplan%2Bto%2Bskip%2Bmanicures%252C%2Bmovies%2Bto%2Bsave%2Bfor%2Ba%2Bhome.jpg
https://1.bp.blogspot.com/-Z9DTVu7ECLE/XO-syFGRJYI/AAAAAAAAkYE/78Cvl8io-kIAS22smTOGsBmtvSyMmEf-gCLcBGAs/s72-c/Millennials%2Bplan%2Bto%2Bskip%2Bmanicures%252C%2Bmovies%2Bto%2Bsave%2Bfor%2Ba%2Bhome.jpg
Home Magazine
https://home.dearjulius.com/2019/05/millennials-plan-to-skip-manicures.html
https://home.dearjulius.com/
https://home.dearjulius.com/
https://home.dearjulius.com/2019/05/millennials-plan-to-skip-manicures.html
true
3672986080801762734
UTF-8
Loaded All Posts Not found any posts VIEW ALL Read More Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy