Millennials are finally buying homes – but many are having second thoughts after they sign on the dotted line.
According to a recent Bankrate survey, 63 percent of millennials have regrets about their property purchase, more so than any other generation. Only 35 percent of baby boomers also had regrets, and about 50 percent of Gen Xers had second thoughts after the bought, representing 44 percent of all buyers.
What is the the biggest hiccup? Unexpected maintenance and repairs are costly, according to 18 percent. Many were used to calling a landlord to take care of a problem, and now it’s something they have to fix personally or pay someone to take care of it. And according to another Bankrate survey, homeowners spend about $2,000 every year on home maintenance costs, which adds up quickly. Other regrets buyers had after the fact including purchasing a too-small home or buying in a less-than-ideal area. Due to a lack of inventory on the market, some buyers compromise on their wants, and up regretting it. Still, the majority of buyers (56 percent) are happy with their purchase and have no regrets.
Despite a few regrets after buying, 79 percent of Americans still believe that buying a home is a part of the American dream, more so than retirement, a successful career and buying a car.
Among non-homeowners, the biggest hurdle for them to homeownership is their income, according to 51 percent. More than 40 percent said they cannot afford a down payment and closing costs, while more than one-third reported that home prices are too high right now.