What Millennials Fear Most and Why
Intuit Group Real Estate News, August 2016 - SPECIAL EDITION
Acceptance. Change. Security.
Three actionable realities that people of all generations can arguably state as must-haves for their near future. But for millennials, these are an integral part of their day-to-day societal mantra.
We see it in the national demonstrations. We hear it in the current political climate. We feel it in the fear that, for millennials, drives the future. And millennials will drive our future, just as other generations before them have: Gen Xers, Baby Boomers, etc.
To better understand millennials, perhaps we need to take a step back, keep our opinions quiet, and observe how their fears reared their proverbial ugly heads. After all, fear doesn't arrive unmitigated--it is fueled.
Sure, it's easy to find the fuel. Simply turn on the TV news, talk radio, and social media networks and there is ample content to further propagate fear. Let's delve behind the media hype and immerse in varied perspectives. Let's step into truth.
Millennials are 20-something. When they were children, they had to try to grasp the concept of terrorism on home soil. They were expected to understand Wall Street, accept University student debt as the new norm, and enter a Corporate America that had no jobs available to them.
Millennials speak out. Millennials want to be heard. Millennials want what every other generation before them has wanted, and deserves: freedom, opportunity, and positive growth. It starts with acceptance, change, and security-- three actionable realities that can come, to some degree, with home ownership.
Why, then, are millennials seemingly reluctant to enter into home ownership?
I took it upon myself to learn the answer. As a real estate professional, I am baffled at the small amount of first-time buyers. From a purely numbers perspective, it doesn't make sense to me. With rental rates skyrocketing and mortgage rates at steady all-time lows, home ownership should be a natural progression for millennials. So what happened?
Real. Life. That's what happened.
During a recent conversation with a would-be first time home buyer, I asked him what, exactly, is the millennial mindset.
"Buying a house is something you do when you have a lot of money. That's way down the road. I have student debt that I have to take care of. And a lot of my friends' parents lost their homes in the real estate crash. But when you told me about down payment assistance programs for people like me, grant money that I don't have to pay back, and the tax benefits of owning my own place, that got my attention," he said.
But I wanted to know the core reason why millennials were fearful. So I pressed on. I asked him again. This is what he said.
"We just don't want to work so hard at getting something, and then losing it--like a home."
I was dumbfounded and felt compelled to respond, much like a friend would, "We all are fearful of loss. And sometimes we lose in life because there's no guarantee in anything. But if there's benefits in owning something, don't you think you'd fight even harder to keep what's yours?"
His response was immediate, "ABSOLUTELY!"
For those who have lost a home to short sale or foreclosure, that was then. Recreate your "now". Everyone has a failure or two. Make your setbacks temporary. You fall. And then you get up. You move on to succeed again.
I suppose I look at home ownership as symbolic of a bigger picture. Do we choose to allow fear to dictate our lives or do we lead by confidence? Will we succeed using fear or confidence to bring about acceptance, change, and security?
I'll bet on confidence, every time.
How do you gain confidence? Knowledge.
How do you achieve a goal? Apply knowledge to a solid plan and follow it.
Now... let's get back to that pesky fear-based thinking and home ownership. Here's a quick five-step exercise to get home ownership into the millennial life plan.
1. Stop Feeding the Fear - Believe that you can own a home
2. Inaction is the Same as "No" - Know where you stand; get your FICO score
3. Know Could Mean "Yes" - When you know your FICO score, you can map out a timeline and course of action to home ownership
4. Plan for "I Can" - Take financial decisions seriously; don't ignore personal debt, deal with it head on
5. Ask "How Soon" - Talk to a mortgage consultant about options
Regarding the dreaded word "No"...
Nobody likes rejection. But if you're told "no" to qualifying for a home loan, "no" means "no" at that time--it's not a "no" forever. Stay committed. Stay vigilant. Stay positive. You can make it happen.
The Intuit Group @ VRG
Email: intuitgrouprealestate@gmail.com
Website: theintuitgroup.com
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