If it is True that Millennials Want Smaller Homes…
…Then CMSSC Has the Answers!
As with most “Expert Opinions” much depends on their bias, research sources and interpretive skills. Data from financial institutions who provide mortgages and construction loans and Home Builder Associations is based on hard statistical facts.
McLaughlin’s opinion is clearly qualified by “Dreaming Big”… and on that point I can assure you that I spend more time “re-shaping” a client’s “Big Dream” in order to downsize their expectations so that they can afford a new home that is consistent with their debt-to-income ratio, with their available cash down and with the amount of construction loan they can be approved for by their Lender. When it comes to selecting a new home, Millennials (those aged between 25 and 34 years of age) are no more of a “One size Fits All” group than any other age group. With exceptions, most Millennials have yet to reach their peak earnings and are thus financially restricted as to the amount they can afford for housing.
Many Millennials have now realized that they can escape the rent-from-a-landlord “trap” by investing the same monthly amount (or even less!) they are paying their landlord or property management company into a home purchase mortgage.
Fact: Anyone with a decent mid-FICO credit score (660 or better) a qualifying debt-to-income ratio and $12,500 – $15,000 in savings can realize the dream of having a new home built that provides the unique sense of satisfaction that accompanies home ownership for a monthly mortgage payment range $850 – $1,200!
Whether you are a Millennial single or couple or are of older age… perhaps approaching retirement and your need to maintain and manage a large home is no longer practical, then a smaller semi-custom home built on a land or lot of your choosing will be among the smartest decisions you have ever made!
I have illustrated this article with a few examples of smaller homes within the range 770sq.ft up to 1,265 sq.ft. Plenty of choices and don’t forget that you can, in most cases, make changes to the floor-plan layout. In addition, just because the layout provides for three bedrooms and you need only two there is no problem in removing an interior partition wall to increase the space of an adjoining room.
Another BIG benefit of having your new home built to meet your preferences (and budget!) is that you get to choose the area that suits your lifestyle whether that means a small suburban lot or a larger lot/land in a semi or mostly-rural area, or a coastal, creek side or river front setting. We can even help you with your lot/land search .
Call or email to schedule a meeting to discuss how best CMSSC can transform your dream into reality! Bob Corrigan 843-364-5413 or emall firstname.lastname@example.org
“Why Millennials Are Buying Very Small Houses”
(November 2 2015 article by Laura Schaefer – the Credit Union National Association)
“Millennials See Smaller Homes, But Won’t Sacrifice Details”
(January 26 2015 article by National Association of Home Builders)
“Dreaming Big: Americans Still Yearning for Larger Homes”
(February 26 2015 Blog article by Ralph McLaughlin for Trulia)