Millennial has become the generation of renting. A recent study has also shown that leasing is common among youth. But the questions emerge. Why do young people not favor buying houses?
The main reason behind the renting trend is age and money. As millennials, you are between jobs. This switching sometimes requires moving to a different city. So, it is wise to rent a house. The second reason is money. Buying a house requires you to invest money, pay bills, and other expenses. So, it is not wise for young individuals to purchase a home.
We did some research and found some other reasons as well. This article will explain why renting is a reasonable choice as compared to buying for young people.
1. Responsibility of House
Home comes with a lot of responsibility. These responsibilities include landscaping, maintenance of the house. It is challenging to handle the stress of homeownership, as well.
The tasks of maintenance are managed by someone else in a rented home. However, renting is easy. All you have to worry about is paying your rent on time. If you cannot bear the burden of buying a house, renting is your thing.
2. Life Planning and Finances
Life has many ups and downs. At a younger age, your life can change abruptly. Due to consistence changes in your life. Buying a home is not the right choice. Aside from fluctuating life events, you also need stable finance to buy a house. A mortgage commitment is usually either 15 or 30 years. Considerable planning is required from your part financially.
3. Loan Approval
Getting a home loan is not the right choice for millennials. You must have a good credit score. You must have a robust financial history for loan approval. As a millennial, it is not possible for you. It is another reason for you to consider renting a home. Renting will save your monthly payments. No long term commitments in a rented house. No approval process needed to rent a house.
4. Looking For a Community
Homeownership has some perks. Living in a rented apartment gives you many benefits. It gives you a sense of community. In the apartment community, many people live in the same space. Apartments also offer many facilities for people as well. These facilities include pools, fitness facilities, shared outdoor areas, storage rooms, and more.
5. You Can Move Anywhere
Millennials do not require a home. The main reason behind it is they have no family. No burden of family and children. They life is inconsistent and less permanent. A millennial can move anywhere. It is expensive to buy a home in an ideal neighborhood. But it is not difficult to rent a house in such a place.
You must prefer leasing a house if you are not in a city for a long time. Buying a home there would not make any sense. It’s difficult to accept a job offer in another state when you have to sell your home first.
There are some other downsides to buying a house as well. You will pay taxes; you will be responsible for repairs. It is harder to move. You will have to sell your property before moving. Due to these drawbacks, a millennial prefers renting.