Helping Young People Buy Homes

At 22, a home of his own

Publication The News-Review
Date July 19, 2006
Section(s) Business - Real Estate
Page
Byline
Brief Photo:27316,left,;One young man's quest for ownership
By Mike Giglio

With high housing costs driving an alarming number of would-be residents away from the East End, the area has undergone a noticeable change in demographics. A well-establish




One young man's quest for ownership

By Mike Giglio

With high housing costs driving an alarming number of would-be residents away from the East End, the area has undergone a noticeable change in demographics. A well-established career, deep savings account and, in many cases, multiple incomes have become the standard starting credentials for prospective homeowners. Young professionals are increasingly forced to choose between living with parents; renting, without an adequate chance to save for the future; or moving away. Many have chosen the latter.

Stephanie Galka, an associate realtor with Century 21, has seen an exodus of potential homeowners unable to keep up with escalating living costs. "A lot of it has to do with the younger generation not staying here, having to get out because they can't afford to be here," she says. For the majority of her clients, the age group ranges from buyers in their 30s upwards. In fact, her youngest buyer had been 29, married, with a child on the way.

One new Riverhead resident, however, has shown that being young and owning a home are not necessarily incompatible. Mike Densieski moved into his new place on Feb. 7, at the age of 22. "It was one of the best feelings I've ever had," he says of signing the mortgage and settling in. "I always wanted to buy a house, and I just kept saving until I actually had enough money to do something

with it."

Mr. Densieski, who graduated from Riverhead High School in 2002, never intended to rent -- "it's the same as throwing money away" -- so he lived at home with his father while working 60 to 70 hours a week for Nu Green Landscaping, a company owned by his brother Joe, for the past three years. "He started out as a laborer, and now he's grown up and taken the first step toward being a man," his brother says. Mr. Densieski is currently a masonry foreman in charge of landscape construction.

It takes more than hard work and saving to prepare for that step, however. Mr. Densieski slowly built his credit with the hope of securing a mortgage. "I got a couple credit cards and would use them, then pay the balance right away," he says. He then took out a small loan on a dirt bike to boost his credit score.

Mr. Densieski also "beat the pavement," according to Ms. Galka, spending time in search of the right house at the right price. "He had the drive to get a house," says Antone Densieski, Mike's father. "He'd been looking for the past two years, had his interests in the right place as far as working to buy a home instead of wasting money." Mr. Densieski eventually found a newly renovated house that fit his price range: "I was always looking in real estate books, and when I finally thought I had saved enough money, I decided to go for it." Mr. Densieski contacted Ms. Galka, who put him in touch with a mortgage broker.

"I didn't like him moving out," his father says. "I would have liked for him to stay here until he's 60. But at a certain time you have to move on. It's good to see that he's moving up, not just on."

"A lot of it is maturity level," Ms. Galka says of the generation gap between Mr. Densieski and her other clients. "Mike's unique for his age. A lot of people aren't capable of doing it on their own at 21 or 22. For a single guy without having two incomes, it's damn near impossible." Even those in their late 20s who buy, Ms. Galka notes, usually rely on two incomes to make payments. Mr. Densieski continues to work long hours, and he has rented out an extra bedroom to a friend to help with the bills. "The mortgage payment is a big chunk out of my check," he says, "so I'm not really saving right now. But I'm building equity and the house is gaining value."

Mr. Densieski plans to fix the house up and eventually sell it. He has already made landscape and lighting improvements and plans to renovate the kitchen and further improve the yard. "Then, hopefully, I can do the same with the next one," he says.

Ms. Galka hopes to see more buyers Mr. Densieski's age come her way. "I'd like to see more young people being able to afford to stay here," she says. Recent changes in the market have given her some cause for optimism: "From the time I started to right now, I've really seen the normal prices starting to come back. There are a lot more houses now that you can get. I have two right now in Reeves Park that are under $250,000. You couldn't get that a year and a half ago."

For those, like him, who aspire to own a house on the East End, Mr. Densieski has this advice: "Get a job and work hard." An increase in affordable housing opportunities might make that hard work go a long way toward keeping those who grew up in the area from moving away.

"I plan to live here as long as I can. It's a good location, and it's close to my job and my family," Mr. Densieski says. "Plus, you know, it's affordable."