Generation Y: Do I buy the Deal or My Dream Home

A lot of Generation Y (Humans born between 1977-1994) are getting ready to purchase there first home. Even though we are in a down economy the  real estate market is getting ready to greatly prosper anytime now. 

All knowing as the former Gen X, Gen Y, they have what it takes but are also willing to do something about it.Two factors prove this Time and Drive. Even the youngest part of Gen Y are new college graduates that watched and learned from the recession that changed the real estate market as we and they know it.  The best part about this Generation is that they are educated and not scared to buy either aka there "Drive".

Given our market today there are two reasons people buy real estate. As I explain to a lot of my first time home buyer clients, you either are purchasing the "Deal" or "Your dream home". Maybe not necessarily your dream home, but a home that you really like not for financial reasons.    

The "Deal" can come in many ways. One of the best examples of purchasing a home for a deal is buying a foreclosed home. America is on sale right now, literally! 

Mortgage rates are at record lows, down payments are just as low, and guess what? Generation Y has not killed their credit or stacked themselves sky high with dept. Most of the buyer's in this generation are so concerned with student loans they do not even think that can qualify for a mortgage. 

When you a purchasing a property for a "Deal" you should not get attached to the property at ALL! Your transaction is only about the numbers, the price, your ROI, the equity that the home already offers, and other financial factors. Get more than one CMA on the property to give you the best idea of what it is worth. They always say get a second opinion when you go to the doctor, so do the same with a real estate transaction. Your purchase is not based on the cosmetic features, curb appeal or interior and exterior benefits. Now I am not saying "Buy any home just because it's the best deal". Make sure this home is what you want and the Price/Deal is really what you want. 

On the other hand, you can buy "Your Dream Home", or a home you really like were price is not the deciding factor. Do I love this home? Would I want to live here at least for the next five years? Would I pay extra just to live here? These are all examples of questions that you would ask yourself or you would be thinking when purchasing a home that you absolutely love. Some people love every home they see, these homes are not the case here. Your dream home is home that you cannot live without, there will be a fate feeling between you and the house. Trust me you will know when you have found "Your Dream Home". Remember this ,if one home gets away from you, you will find another dream home. No one just has one dream. You have another dream the very next night no matter if you remember your dream or not. 

With all this said there are somethings that you want with both purchases. Make sure you feel safe at home. Secondly, this might be most important, make sure you can afford this home and pay your payments. Have at least 3 months of home expenses (mortgage payment + other household bills) put to the side just in case the worst happens like you lose your job for instance. No one wants to go into foreclosure and banks do not want to have to foreclose on you. It   Lastly, no matter if you buy the "Deal" or "Your Dream Home" make sure that YOU are happy with your purchase.