Millennial Home Ownership

I'm continuing Millennial Money Week on the podcast today by talking about millennial homeownership with my friend Lauren Bowling of L Bee and the Moneytree. Home ownership, no matter how old you are and when you achieve it, is a huge decision to make. You don’t want to base decisions solely on emotions but also measure them against your goals and other dreams.Lauren purchased a home at age 26 with the expectation that she and her then-fiancé would live in it after they got married. She put a nice down payment on the purchase and began a $68,000 renovation three months before their breakup. While her situation didn’t turn out so bad – she nets about $400 a month in renting it out to tenants – Lauren realizes some mistakes were made and wrote a book about it, The Millennial Homeowner: A Guide to Successfully Navigating Your First Home Purchase.

What are we drinking?

Lauren — Red wine

Shannon — Malbec

Podcast Notes

Lauren says her book takes you through the thought-process of becoming a homeowner.
Shannon says people often don’t think about the extras of homeownership besides the down payment.
Lauren recommends that first-time buyers not renovate their home.
You can go through the home-buying process and not learn a thing.
If the bank and a realtor are the only two sources you have for buying a home, find a different resource.
Shannon tells all her clients to have a $10,000 contingency fund for their home because you never know what will popup and those unexpected costs add up!
5 years, which is the recommended amount of time to stay in a home, is a very long time.
Lauren advises to buy a home for the situation you are in right now, not the situation you think you will be in in the future.
Shannon & Lauren agree that student loan debt is deterring millennials from purchasing a home.
If you are going to spend money, Lauren believes purchasing a home is a good investment.
She likes the security homeownership provides her as a single woman.
Shannon says if you pick a smart property and make all the right decisions in advance, you have flexibility down the road to make creative choices with your home.
Lauren says her biggest mistakes with purchasing her first home include taking on a $68,000 renovation (the cost of the home!) and not having enough saved for unexpected costs.

TAKEAWAY: Homeownership, at any age, is a huge decision to make. Take the time to review your situation and your options and use resources, like Lauren’s book, to help you analyze if it’s the best decision for you!