In order to know where it is that each generation goes wrong in buying a home, here’s a simple breakdown of the dynamics of each generation and their way of investing.
Who are baby boomers, Gen X, and millennials?
a) Baby boomers
What year: Born between early-mid 1940s and 1964
Their respective investment plans:
• Investing in real estate
• Cashing in on matured fixed deposits
• Senior Citizens' Saving Scheme
The possible flaws in their investments
• Not having invested earlier enough
• Not being open to investment diversification
b) Gen X
What year: Born between 1965-1979
Their respective investment plans:
• Bonds
• Fixed deposits
• Mutual funds
• Property investment
The possible flaws in their investments
• Not paying much attention to retirement or other means of self-beneficial investments due to family commitments
• Still facing confusion about the market
c) Millennials
What year: 1981- 1996
Their respective investment plans:
• Long term-investment like Public Provident Fund (PPF)
• National Pension Scheme (NPS)
• Tax deduction benefits scheme like ELSS
• Real estate investment
The possible flaws in their investments
• Not giving serious consideration to investment plans like FD, real estate, mutual funds, etc.
• Investing incorrectly in homes due to lack of information on the realty market
• Doing research without consulting an expert/agent to buy a home or any other property
Mistakes made by each generation while buying a home
The reasons to dabble in investing differs from generation to generation. However, the kind of investment that remains the same, is real estate. And why not, real estate has quite a few gains like ROI, comfort, security and a hedge against inflation.
Since the real estate sector is always evolving, there have been (or will be) times when that has either caught home-buyers off guard or confused them. Sometimes, it could’ve also been that they weren’t very attentive to what’s going on in the sector.
These reasons can lead them to make mistakes while buying homes.
Here’s how each generation has flawed in some ways:
Baby boomers:
• They tend to fixate only on a single location due to its comfort and convenience. Since they do not wish to part away from that, they do not buy another home that can fetch far more benefits.
• Being washed over with the excitement of retirement, some may end up buying a retirement home with a scenic view and not fully realizing the long-term disadvantages. This sometimes forces them to sell the home at a loss.
• Not calculating taxes like sales, property, and retirement income taxes before buying a property.
Gen X
• Many Gen X-ers fall short of money after having purchased a home. This is because of not saving up the required amount of money.
• Avoiding investing in smart homes when it’s a great home investment because they’re worried about whether they’ll be able adjust to it.
Millennials
• Buying a home that’s a bit too over-the-top rather than focusing on a real estate purchase that will be more ideal.
• Not taking home inspection seriously which may lead to them spending big bucks on a not-so-reliable property.
• Buying a home on rickety financial grounds, meaning investing in a home when loans aren’t cleared and not calculating the fund requirements in the long-term.
Conclusion
Buying a home is done to gain security and financial advantages. Hence it should be done with utmost meticulousness and patience.
Steps like:
• Saving up money to make down payments easy
• Assessing factors like location, connectivity, and ROI,
• Consulting a reputed real estate agent or a company like Omkar Realtors and Developers
Are necessary to follow so that one’s happiness of buying a home is retained in the long-term.
If buying a home is on someone’s mind, Omkar Realtors and Developers won’t only lend their ears but also expert advice and more, great homes in the dream city of Mumbai.
Whether they’re the laidback baby boomers or the driven millennials, Omkar has a home for everyone, like Ananta, The BLISS Collection, and Vive.
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