How today’s youth makes real estate buying decisions
Dec 03, 2018
A far cry from how the last generation has been - millennials are confident, fearless and self-assured. This has an impact on home-buying as well. Here’s looking at it briefly:
A shift to experiential buyingA recent article projects millennials as cautious and prudent buyers - “ready to take on more calculated risks (only) after an educated and informed analysis of the property.” It says that “65% of millennials’ decisions are based on a 3D image view seen on their mobile phones before they actually visit a site”. They look for amenities, features and benefits that would improve the experience of their home. What about you?
Money is important, but not everything
>In another departure from the previous generation, millennials can spend more money for their homes, but provided they get quality. The article says that today’s generation wants smart homes that are high on convenience: “43% of millennials want the latest in gadgets and technology to aid comfort.” Even location, hospitals, schools etc play a pivotal role in making the decision. Does this matter to your home buy as well?
Strong, but not so long
Millennials prefer making short-term commitments. So while for their parents, 10 years was the average tenure of stay in a home, it is 6 short years for millennials. Their goals are short-term, well-articulated and they don’t believe in saving beyond 5-7 years. They will go for the buy only after they have carefully evaluated all options and have a sense of financial security before taking the plunge. So they seek the best advice and are willing to pay a premium for a trustworthy advisor.
The investment decisions of millennials may be guided solely by social patterns and several environmental factors. It is worth watching how it will impact the way you buy your home.