Follow Tyson Linkedin Facebook
Email Tyson Email
Residential Real Estate
Aug 1, 2018

Do Millennials Regret Becoming Homeowners?

Sponsored Content provided by Tyson Emery - Owner, KBT Realty

Many people see buying a home as one of the rituals of adulthood. Attaining a secure job and owning your own home is often part of the plan as you get older.

If you are within the age range of 21 to 34 and own your own home, do you feel this was a good decision?

If you do, then you might be lucky.

A recent 2018 Millennial study, conducted by Bank of the West, shows that four in 10 millennials regret becoming homeowners. A big part of the regret is often the result of where they found the money for the down payment on their new property.

The survey reports that those who drew money from their retirement accounts retroactively thought of it as a poor financial decision. Others wished they had been more prepared when purchasing, which includes putting down more money and more thoroughly inspecting the house.


Borrowing From Retirement

Is it ever a good idea to withdraw from a retirement fund to invest in real estate? Although it is doable and not the worst idea, the short answer is no.

While most 401(k) plans offer options to borrow money for a down payment on a house, rather than removing the money entirely, it definitely shouldn’t be your first option. According to Forbes.com: taking out money—even if it's just a loan, not a withdrawal—goes against the most deeply ingrained tenets of saving for retirement (namely, “Hands off”!) ... and it can be habit-forming.

It is always a better idea to save your retirement money for retirement.

A good idea is to always talk with a financial advisor. Someone who is familiar with your financial standing can help you formulate a plan on how to save or borrow for your first home. It is possible to save for a down payment, but you may have to slightly adjust your timeline and lifestyle in the meantime.


Better Options

Although all the following options may not be available to everyone, they bear thinking about in terms of long-term strategy:
  • Live lean for a while and put off the idea of buying a home until you can save enough money for the down payment.
  • Skip the luxuries and vow to put aside the money you would have used to pay for vacations, new cars, new furniture, etc.
  • Put any bonuses you earn into the same down payment fund.
  • If you get married, inherit money or accrue any other windfalls, save it for your new home.
  • Look for less expensive “starter” homes and work with an agent to make the best investment you can. You can always make a plan to upgrade in the future.
Our goal at KBT Realty is to make sure that, as a first-time homebuyer, you are confident and satisfied with the decision to become a homeowner. Our agents are always happy to talk about the different options available to you and can also provide references for trustworthy financial advisors.

Whether you decide to borrow from your retirement fund or not, don’t try to figure it all out yourself. Let us use our expertise to help you find a home that doesn’t break the budget and fits in with your future financial plans.

With a mortgage background stretching over the course of eight years and several years of experience in the Real Estate industry, Tyson Emery has proven that he gets the job done. His Real Estate career has allowed him the privilege to work with several clients, which has consistently landed him in the top one percent every year. As an owner along with Kirk Pugh and Becky Brown, KBT Realty has continued to grow by providing an environment to agents that concentrates on training and personal growth. Their philosophy is to figure out what you are good at and help you become great.

Blockad 5241843645
Ico insights

INSIGHTS

SPONSORS' CONTENT
Dallas headshot 300x300

3 Ways To Position Yourself And Your Family For Future Success

Dallas Romanowski - Cornerstone Business Advisors
Hardy revised

The Future Of Health Care: Administration

Charles Hardy - UNCW College of Health and Human Services
Hewet60

Stress Can Work For You

Ron Hewett - Academy Leadership

Trending News

PPD To Offer 60M Shares In Initial Public Offering

Christina Haley O'Neal - Jan 27, 2020

Heavy Hitter Buys PlayerSpace

Cece Nunn - Jan 28, 2020

Port Opens New U.S. Customs And Border Protection Office

Christina Haley O'Neal - Jan 28, 2020

Adam Shay CPA Adds Three New Team Members

Christina Haley O'Neal - Jan 28, 2020

CloudWyze Adds Two To Its Executive Team

Christina Haley O'Neal - Jan 28, 2020

In The Current Issue

Packaged For Generations

Family firm Atlantic Packaging is putting the final touches on its newly expanded headquarters and opening a new location this month. ...


Teaming Up: Are Public-private Partnerships In Area's Future?

Officials in the region and beyond are bringing public-private partnerships to the table as potential solutions to public needs that could a...


Working As A Husband-and-wife Team

The Wilmington business owned by husband and wife Devin and Brooke Skipper began with Devin as the sole employee about eight years ago befor...

Book On Business

The 2019 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2019 Health Care Heroes
August 26, 2019 Power Breakfast: A Healthy Sale?
2019 WILMA Leadership Accelerator
2019 WilmingtonBiz Expo Keynote Lunch - CEO, nCino, Pierre Naude`