You might’ve seen stories in the news about the price of avocado toast and how it’s hindering millennials’ ability to save for a down payment on a home.
In May 2017, Australian millionaire Tim Gurner, talked to Australia’s “60 Minutes” about millennials spending money on high-priced items like avocado toast instead of saving money for a down payment on a home. His comments were met with disdain with different news outlets explaining how Gurner’s claims were false because of other major, external factors.
According to the National Association of Realtors, millennials are the largest group of homebuyers at 34 percent and are competing with repeat buyers, making starter homes scarce and more expensive. The increased cost of a home isn’t the only thing millennials need to worry about. Student debt is another huge expense. According to Debt.org, the average student in 2017 has student debt up to $37,172. With an increase in home prices and the astonishing amount of student debt, avocado toast is hardly a reason millennials can’t save to make a down payment.
If you want to continue eating avocado toast and save for a down payment, check out some of these tips below:
- Get a second job and put that money in a special savings account that’s strictly for your future down payment. If you can’t get a second job, take a set amount out of your pay check and distribute that amount in an account for your future down payment.
- Skip a vacation for the year, and set the money aside. The money you would’ve spent on a vacation can be used toward your down payment.
- Look at your expenses and see where you can save money by reducing or eliminating something, such as lowering your gas and/or electricity costs.
- If you need more smart ways to save for a down payment, click here for 20 more options!
If you’re starting to save for your down payment and want to know the next step in the homeownership process, contact a loan officer today!