The loyalty of the Millennials has been questioned because according to studies and polls, these “kids” switch jobs every 2 to 3 years and don’t believe in the corporations. Who wouldn’t with the constant threat of layoffs and dwindling pension and benefit packages? Baffling as it may sound, this generational group does not run at the first sight of commitment; most are heartbroken because they job of their dreams keeps getting pulled from underneath them. After ten years with the same company, I resent the implication that my peeps aren’t loyal. Since we are expendable and it looks bad to layoff the experienced work force – the appearance of age discrimination rearing its ugly head – all we can do is grin and bear it.
Coincidently, the aging workers are starting to retire or die trying opening the doors to job roles and positions that were not available before. If you are looking for a steady paycheck and the promise of becoming the next expert, the engineering and technology worlds will soon be ripe for the taking. If you can arm yourself with a pre-approval letter and are enticed by your buying power and/or career change, here’s the ten reasons why now is the time to move:
1.Housing prices are rebounding.
It’s a sellers’ market so if you are selling during the spring and summer months you can get more bang for your buck. In certain markets prices are going up so it won’t be cheaper to buy in the near future. It is definitely the time to consider putting your home on the market to check out your actual selling power. You may get an offer strong enough to consider moving.
2. Market will be flooded with posh homes in good areas because retirees are dumping them to move elsewhere.
I’m seeing postings of homes in established, high end communities selling for affordable prices. After 30 or 40 years of ownership, retirees are cashing out on their investment properties at decent profit margins. Certain areas need the influx of young blood so the realtors are keeping prices competitive and low. Plus, most of these homes are 30 to 40% cheaper than they were back in 2008, before the housing crash.
3. Downsizing in terms of price can lead to a bigger home.
In many areas, a 2,500 sq. ft. home is selling at a lower price than a comparable home a few years to a decade old by about 30k to 75k. My property in 2005 was worth $410k at 2,000 sq. ft., now it is worth $375k +/- 10k. Moving into a cheaper home would save us about $200 in mortgage payments, and most selling in our area have either a third car garage or 500 more sq. ft. More house for the same money!
4. Job markets will be full of opportunities due to back filling needs.
Your dream job may be just around the corner or a couple of states away. The brain drain created by the Boomer retirement waves will prompt recruiters and head hunters to market their companies and opportunities to those in similar fields. I project a bidding war over talent ensuing. Check local professional chapters and conferences to network and land a better path for your career.
5. More responsibility equals more pay.
Some of the brain drain jobs will require experts of the utmost caliber so recruiters will need to match or better existing wages and market averages. Unless companies magically resolve the knowledge transfer issues, or develop the program that Neo used to train in The Matrix, we will all have to incur in more responsibility and/or reinvent the wheel. With great power comes great responsibility.
6. Interest rates are low.
Back in 2005, loans hovered around 6% APR and now they are around 4% for well qualified buyers. If you can’t move, and have a higher interest rate, consider refinancing. It is only going up from here.
7. Moving during the summer time makes it easier for kids to switch schools.
Because we don’t have children I didn’t realize that summer is the perfect time to switch houses especially if you need to change school districts. Because of this need, bidding wars may occur over well located and maintained properties. If you happen to live in such areas, selling now will get you a nice profit and excellent interest rates for your next purchase. It’s a gamble because prices may continue to rise but whatever extra money you make could be lost on higher interest payments. Choose wisely.
8. Lots of new construction.
Construction loans are on the rise because of low interest rates and the need to either remodel existing homes to upgrade the exterior and interior for the new generation of home buyers. More tax payers are always welcomed by cities as it fills their coffers; more and more I see communities popping up in locations where there used to be one house or an open lot. If you are into new construction, check out listing services or talk to a realtor. You’d be surprised at the modern homes they are building these days at good prices.
9. Down payments of 5% are available, although you will have to pay mortgage insurance.
The zero down home loans and interest only options are in the past. The alternative? Five percent down payment loans! It works well for entry level homes and families, especially in the $100k to $200k price range. If you can raise $5,000 you could buy your own place. Beats renting.
10. Listing agents and realtors can offer discounts on commissions when helping you sell and buy a home.
A little known secret, some realtors will offer some sort of cash back or discount when helping you sell your home to buy another one. This will save you money as a seller/buyer. Since the seller traditionally pays realtor costs, you can buy and sell a home for 4.5% instead of 6% saving thousands on your transactions! Make sure to ask politely if your realtor doesn’t offer this alternative. Some are willing to negotiate while others may offer the cut without asking.
Happy house hunting!
Mrs. Enginerd - Nerd Whisperer 