A majority of us have long ago graduated college and went on to big and better things whether it be a job or starting a business.
Fast forward today, the same situation is occurring, but with a few glitches and potholes confronting our millennials and Generation Xer’s and others too!
Burdened with those school loans, credit card bills and whatever else you may owe, has made it that much more challenging to purchase that first co-op, condo or home.
Most baby boomers who went to college in the 1960s and 1970s graduated with no student loan debt because they paid very little in tuition at public colleges and universities.
Their educations were also often subsidized by federal and state grants. Cut to today: student loan debt in 2017 stands at 1.4 trillion dollars.
Today, the average student loan debt for a college graduate stands at $34,000-$400,000 or more if you are in a medical specialty (neuro, heart, oncology, etc.), professional field, eg. lawyers, architects, engineers or anyone that earned an MBA or PhD.
Moreover, credit card debt of one trillion plus dollars is strangling them as well as many, many others, just to make ends meet; and ridiculous interest rates that use to be usurious and illegal and what loan sharks are charging!
I have seen rates as high as 35 percent on credit cards and we call this fair?
I call it out and out pilfering of the future potential wealth of our young as well as everyone else. Stuck with debt for the foreseeable future and for some a possible lifetime of paying it back!
Our government has allowed this, and laws previously passed about credit card debt that cannot just be eliminated (talk to your attorney for suggestions) because it’s
always been about the money; the haves and have nots!
Sorry for the rant, but I am pissed off and I had to say something. Now back to purchasing your first home!
Many professionals have found it a bit easier than those that are in the service sector who are not making much more than $10-$25 per hour to save and secure a mortgage.
Today, you can put down as little as 3 percent (no co-ops) to buy your first home; but there are conditions that must be met with respect to incomes, fees and other requirements, which you will find in an excellent article that will delve into the nitty gritty and specifics of qualifications.
My article would be way too long (and the editor would be livid) to explain it all, so read it all here:
Now the other creative ways to get that down payment, which I mentioned in one of my previous articles:
1.) Getting a documented and notarized letter for a gift from your parents. They can give you $14,000 per spouse per year ($28,000), called gift-splitting; income tax free!
The gift will not reduce your debt/income ratio, which the lending institution will calculate to formulate your mortgage capability and qualifications.
2.) If you have a 401K or any type of self-directed IRA or retirement plan, you can withdraw the money without penalty or repayment (ask your C.P.A. for details).
If you work for a company, ask the retirement division or whomever handles the retirement plans to find out how, if possible, you can take out the necessary monies.
A majority of individuals are not fortunate enough to even have a retirement plan, so it will be much more challenging to come up with the money.
My advice, is to live within your means, sacrifice and do whatever you have to do, scrimp and save, as people use to do, and do not overextend yourself by using your credit cards. Pay cash whenever you buy something or at least don’t buy more than you can afford and make sure you pay off your credit cards each and every month, so you don’t accrue interest.
It’s so easy to use your plastic and not realize that you have to pay it all back; it can be an addiction, just like alcohol, drugs, so don’t get caught up in it!
I guarantee, that if you bite the bullet and save or use the methods I suggested in this article, you will become your own landlord in the future, and begin creating your own retirement wealth, instead of giving it all away to your current landlords!
I hope my reader’s holidays were fun, relaxing and with celebration and great food with your family and loved ones around you and that you all have a more healthier, happier New Year and prosperous 2018!
Holiday Bonus Information for our Readers:
If you would like to receive a digital copy to print of a “Sellers Guide, Things to Consider When Selling, Millennials & Buyers Guide to
Purchasing a Home, see the links below and click or copy and paste into your browser:
http://www.simplifyingthemarket.com/en/sellers/?a=28598-a5c8d945f1821b690c117ac4508ba040
http://www.simplifyingthemarket.com/en/millennials/?a=28598-a5c8d945f1821b690c117ac4508ba040
http://www.simplifyingthemarket.com/en/buyers/?a=28598-a5c8d945f1821b690c117ac4508ba040
Phil is the owner of Turn Key Real Estate at 7 Bond St. in Great Neck. He can be reached by email: Phil@TurnkeyRealEstate.Com or by cell (516) 647-4289 to answer any of your questions or suggestions for future articles.
To search for any type of properties or to see what your home is worth or homes that have sold in your area, go to:
WWW.Li-RealEstate.Com Or if you desire a Free, No Strings Attached customized Comparative Market Analysis to see your home’s market value in today’s market, just call me for an appointment.
