It's taken over two years, but these days Jeremy Mateo is finally feeling at home. Mateo, 27, is a real estate broker in Honolulu, Hawaii, and bought his first condo>A year of saving
When Mateo set his homebuying goal, he was still learning the ropes of real estate and earning $20,000 a year. After researching>The hunt, with an insider's assist
Though Mateo was hitting his savings goals, he recognized that>Upfront costs
Mateo put 10% down>Inside his 'modern millennial bachelor pad'
After he closed>Looking ahead
After Mateo finally closed on his home in March 2020, his first few months of homeownership were stressful. Covid struck right after he closed on his home, and he was suddenly without income as the pandemic shut down the real estate market
Mateo panicked: "I have a mortgage now," but "I didn't sell a home for two months, and I honestly was starting to worry a lot."
By summer, however, the Federal Reserve announced it would hold benchmark interest rates near zero through 2022, "and that's when all of real estate just started going crazy here in Hawaii."
As a result of the wild real estate market that played out for the remainder of the year, Mateo sold 24 homes in 2020 and earned around $250,000 in income, which helped him cover his new housing costs and renovation overspending. Still, going from living on $500 to having nearly $4,000 in housing costs per month has been an adjustment, and Mateo says he's living frugally now to rebuild his savings cushion.
Mateo works from his home office when he's not on location showing listings.CNBC Make It
He plans to live in the condo for four to five years, then buy a single family home and rent out the unit for passive income.
"For me to be a homeowner at 27 in Hawaii, of all places, I think it's such a great accomplishment," Mateo says. "Hawaii is one of the most expensive places in the country. And for me to buy a very nice home at this young age, it feels so good."
Mateo hopes sharing his own buying experience will help other millennials understand the ups and downs of the process. While he previously thought about leaving for the mainland, he's come to understand the privilege of being able to afford life in Hawaii: "When it comes to the people here, the food here, the culture here, that is what makes me love Hawaii so much."
