Are you a Gen Z or Millennial hoping to purchase your first home? If so, it may be a bit tougher than you realize. The current real estate market can make buying a property seem impossible. With rising prices and stringent financial requirements, purchasing your first house may be more complicated than ever before. 

In this post, we’ll dive into the complexities of home-buying for Millennials and Gen Z—talking about some of the common obstacles house-hunters face.

1. Building From Scratch

Photo Credit: Shutterstock.

One user posted, “The only way I can afford to have a home at this point is if I buy raw land, harvest, and process the trees to build it myself.”

Another said, “In the UK, this is more expensive than buying a brick house.” 

“This is a dream for some people, but in the UK, the land is expensive, and we have to import/buy most of our wood because wood foraging* tree felling is illegal* without a license because, of course, it is,” another commenter responded. 

“With a few exceptions, those kinds of rules and regulations are common sense solutions to stop something bad from happening again because people will take the p- when they’re allowed to do whatever they want. There’s often unintended consequences or annoying red tape, but the goal is protecting people and the environment from a-,” another user added.

2. Monthly Mortgages

Photo Credit: Shutterstock.

One Redditor shared, “I can afford the month-to-month mortgage. I cannot, however, afford a down payment. EDIT :- Thanks for the advice in the replies, guys, but I’m not American.” 

“My parents’ house’s mortgage is like half of the rent in my area. I can afford that and probably most of the utilities and such by myself. That being said, the price of the house has almost tripled in value since they bought it. I could probably swing the down payment by myself, but would definitely make me uncomfortable. I honestly feel like I’ll have to get married just to get a house,” another user added. 

Another Redditor also shared some glimpses of his expertise, “This should be the top comment.

Here’s a detailed example:

Wife and I bought our home in 1998 when our first child was born. The house sold for $105k, and we put $10k down.

We hadn’t done anything major to the home when we cleaned it up in 2017 to secure a refinance to lower the interest rate and get cash to top off a remodel. Appraisal was $180k. That’s value growth fueled fully by the loss of so many independent home builders after the market crash.

Brought the kitchen and bathroom up to modern standards (stone countertops, new cabinets, and fixtures), refinished the wood floors, and added a door off the dining room and a large deck. The house was appraised in 2021 for $290k. Two on our street sold for over $300k last year, one of them in rough shape.

Banks here are requiring 30% down for new buyers right now. For my oldest son, who is two years out of college, he would have to provide a down payment that is nearly as much as we bought the house for 25 years ago.

For a 1000 sqft home. Let that sink in.

A lot of small construction company owners, the kind that would build small homes, went out of business or retired after the housing crash, and the industry hasn’t recovered. This has caused a greater impact on those needing starter homes, a lower supply means higher prices. On top of that, renting homes is a good source of passive income, so an industry of corporations built specifically to make money off of them has grown like fungus on a rotted log in this nation.

Home values are ridiculous, down payments are ridiculous, and corporate cash offers are desirable for sellers, making the first housing purchase a nightmare for many.” 

3. Property Tax

Photo Credit: Shutterstock.

One user posted, “I’m affording the mortgage payments just fine, but the property tax is killing me.”

“My escrow just went up 120 a month due to property taxes. S- is rough,” another user added.

A third commenter replied, “That’s what people don’t mention when they say you’re wasting money renting instead of what you could afford with a similar mortgage payment. Insurance is the other kicker. Escrow is the hidden cost of home ownership (as well as all the maintenance and repairs.)”

One Redditor also shared, “If you weren’t paying escrow, you’d still be paying that in taxes anyway. My mortgage broker tries to keep the escrow they collect nearly even with our taxes and insurance payments. They went heavy the first year and just paid me out the difference, but it’s been increased every year since. A landlord and homeowner still end up having to pay for the same things, mortgage (usually, but not always), taxes, insurance, and maintenance. The landlord is probably adding something for profit because the renter is either looking for a short-term deal or doesn’t have the credit to make it through the mortgage application.”

4. COVID Housing Bubble

Photo Credit: Shutterstock.

One Redditor shared, “In 2019, I could afford the mortgage but not the down payment. Now, I can just barely afford the down payment, but list prices and loan rates have shot up so much that I can’t really afford the monthly payments anymore unless I go for an absolutely unlivable crapshack of a property (the sort that includes phrases like “bring your tools!” and “investment opportunity!” and “calling all contractors!” in the listing).”

Another user replied, “Honestly, I would not buy a home in this market. I’d wait for 3-5 years. COVID caused an insane housing bubble.”

“The thing that scares me is all the people who say this is a new paradigm shift and that prices will not come back down. It’s very, very hard to build a house nowadays (I tried), and businesses and rich people are buying more and more of the existing inventory so the little guy owns nothing and has to rent forever at increasingly exorbitant rates,” one commenter added.

5. Injury Claims

Photo Credit: Shutterstock.

One user jokingly shared, “What sort of injury scenario are we looking at to get into a million-dollar payout range? Quadriplegic? Lost limbs?”

Another added, “No loss of limbs. Pretty bad foot break. A bunch of screws and plates. 3 surgeries. Non-stop physical therapy. And a great injury lawyer.”  

Another Redditor posted, “Wow, I had a similar thing in the UK, nearly 6 years into my claim, and I’m looking at 30 to 60k. My solicitor warned me the UK had s- payouts compared to the USA.” One also added, “We got lucky it was Door Dash’s insurance that paid. Their max payouts are way higher than a regular person usually has.”

Source: Reddit.

These 7 Celebrities are Genuinely Good People

Photo Credit: Shutterstock.

We’ve all heard the famous adage that “no publicity is bad publicity,” and while it tends to be accurate, there are certainly exceptions. But what about those few stars who stay out of the limelight and get along without a hint of trouble? 

These 7 Celebrities are Genuinely Good People

These 10 Activities Are an Immediate Red Flag

Photo Credit: Shutterstock

Have you ever known someone and thought you liked them—until you learned about their hobbies? Then you get to know them and then you’re like, “Wow, red flag.” Well, you’re not alone.

These 10 Activities Are an Immediate Red Flag

10 Celebrities That Made the Big Times Then Disappeared Off The Face of the Earth

Photo Credit: Shutterstock.

Some celebrities definitely seem to enjoy the limelight and keep working to stay in the public eye. While others quickly move out of the spotlight. Many of these actors and actresses stepped out of the spotlight to live a more private life without constant media pressures.

10 Celebrities That Made the Big Times Then Disappeared Off The Face of the Earth

These 10 Terrible Movies Are Still People’s Favorites

Image Credit: Troma Entertainment

We’ve all been there – sitting through a movie that we can’t help but cringe at, but somehow it still manages to hold a special place in our hearts.

These 10 Terrible Movies Are Still People’s Favorites

25 Blockbuster Films With Behind-The-Scenes Turmoil Unknown to the Public

Image Credit: 20th Century Fox

Several big movies with significant nightmare productions have some seriously delicious tea. After a recent poll on the internet, here are twenty-five films with disasters that made filming difficult.

25 Blockbuster Films With Behind-The-Scenes Turmoil Unknown to the Public

About the Author

+ posts