Considerations for the Millennial Home Buyer

 For millennials who are considering or have begun their search for their first home, there are some important things you must consider.

1. Low interest rate: Millennials will benefit from attractive interest rates, which hit a 14-month low in March.

2. Owning a home is an investment that will likely appreciate over time: A buyer needs to commit to owning a property for generally at least three years to allow for market appreciation to outweigh the closing costs of buying and selling.

3. Finding the right home: Before you begin shopping for a home, figure out what you can realistically afford. A place that needs some cosmetic work may be more affordable and give you the opportunity to add value with home improvements over time.

4. Hidden costs: These costs include insurance, property taxes and closing fees, and can add up to 5% of the home price.

5. Your 'rainy day' fund: Make sure you have enough money set aside to deal with unexpected costs that inevitably come up over time. You should anticipate spending 1-3% of the home’s purchase price on annual maintenance and upkeep.

6. Location matters: It’s important to understand that where you live plays the largest role in determining the value of your home. Instead of going for a dream home first and foremost, start with an affordable property, and trade up later.