Generation Y Go For Smart Homes

Generation Y or Millennials (population belonging to the age bracket from 18-35), as they call it, prefer smart homes instead of the luxury homes preferred by their parent's generation.  Even if it means living in a smaller home as long as it is functional. 

The millennium generation has grown up with new technology that they cannot live in a home without it.  Although curb appeal is important, they believe home technology advancements are equally as important. According to a Better Homes and Gardens (BHG) Real Estate survey, 64% of those surveyed would pass on a home if it's not equipped with the latest technology, wiring and capabilities.

59% prefer extra space in the kitchen for a TV rather than,  a second oven. And about 41% of Gen Y'ers would likely be fond of a home automation system rather than a newly renovated kitchen. 

The Millenial generation want each room to have a multiple function rather than have it for decoration.  For example, a dining room can also serve as home office. And the living room can also be transformed into a home theater. 

One of the most common technological advancements present at home is the home security system.  Installing a home security system can protect the family and possessions against burglars. Furthermore, it can also decrease monthly insurance payment.  Installing a security system at home can also increase the value of the property should the owner decide to sell it in the future. 

A smart home would have smart household appliances that make it easier for people to do their chores faster, so they can spend more time with their family. Examples are vacuum cleaner, dishwasher, washing machine and dryer to name a few. Not only they make your jobs easier but the newer models are energy saving and eco-friendly.  Not only it lowers the electricity bill but it is earth friendly as well. Smart TVs nowadays have multiple functions, it's a TV, a computer and movie player rolled into one.

Whether it's through home security system, state of the art entertainment centers, or just an automatic-flushing toilet, the contribution of technology at home is endless. 

If you need advice on how to have a smart home, I have a list of experts that may be able to help you.

Is Home Ownership Still Possible for the Millennial Generation?

Bound by student loan debt and looking at unemployment situation n the US, many millennial (those in their 20s and early 30s) - the traditional 1st time home buyers, wonder if they can still afford to purchase their own home.

In May, Alaska has reported unemployment rate of 7%. (Source: Bureau of Labor Statistics)

With the mortgage rates and home prices at record lows,the millennial generation are excited to buy their very first home! Only to find out that their dream of buying a home is out of the question if they are still paying off their student loan debts.

If you belong to the Millennial generation with student loan debts and buying a home is your goal, then you can start with these three steps:

1. Cut debts. Reduce or eliminate all debts including student loans. When a lender reviews your loan application, they will look at the following factors if you can qualify for a mortgage loan. 

  a. Income
  b. Debt
  c. Credit
  d. Employment
  e. Property or collateral
  f. Financial resources used for closing costs

Most lenders want to make sure that you will be able to meet your monthly mortgage payment (including taxes, insurance and all other fees) With all factors combined, this should not exceed 28% of your gross monthly income (before-tax). After that, they will factor in your existing debts, the total of your mortgage payments and existing debt should be under 36% of your before-tax monthly income.

2. Increase your credit score. Lenders want to know what risk they will be exposing themselves if they loan the money to you.  They want to see how much you owe, how often you borrow, if you pay your bills on time and if you are living within your means.  Late payments can hurt your credit score, low credit score can make it harder and more expensive for you to obtain a loan. So, make sure that you settle all your obligations on time.

3. Save on down payment. Once you've cleared all your debts, start saving for a down payment. The amount of down payment you need to save depends on what type of loan you want to take. If you are applying for an FHA loan, the minimum down payment will be 3.5% of the purchase price. While conventional loans may require to pay for 10% - 20% down payment.

If you decide to buy your home while you still have your student loans to pay for, Barbara Corcoran, co-founder The Corcoran Group advised, "See how much debt you are comfortable living with, I would suggest you go on a trial run.  Add up your student loan PLUS what you WOULD have to pay if you were to take on a mortgage and try living on the expenses for 6 months and see if you could live with it. If you are comfortable living with it, then go ahead, if not, then wait for a while before buying your first home".

If you need help on figuring out if you qualify to purchase your dream home, please don't hesitate to call me.  Check out www.anchoragehomedeals.com for a list of homes suited for first time home buyers.