Below is a response with a question that came in response to our real estate e-newsletter we sent out yesterday:
“Here’s my observation. The main problem of young married first time buyer professionals here in the Bay Area is that even if their combined income qualify them for a bank loan, they do not have enough money saved to pay for the 20% down payment. Aside from borrowing money from their parents, is there a better way of solving this crisis?” Joseph Palafox, Architect
The millennial demographic consists of many home buyers who make quite a bit of money. If they focus on a goal of home ownership, they are able to save enough money for a down payment, whether it be 20% or even less using some of the minimum of 3% or 3.5% down payment scenarios for which they may qualify. The issue with any buyer is the standard of living they expect or desire in a home. If the expectation is for a detached home of 2000 sq ft., well, that may be a stretch for some buyers who can afford a smaller home that could use some updating, for example.
Actually, I have a different perspective on affordability here in the Bay Area. We all have choices about where, how and what we live in. If we adjust our expectations in order to live how we want, then there is no “crisis”.
Travel the world a bit more, folks. You’ll see that a lot of the world lives in a lot less than we do here in the United States and they are perfectly happy with their lives and thankful for where they live…
I’m just sayin’!