It’s no more a surprise that millennials generally select renting for affordable and convenient housing alternatives. According to Forbes, barely 11% of people ages 20-29 years have a mortgage, as compared to 30% of all consumers on a national scale. Most of the millennials are not in the condition to pay a hefty down payment, thus a good number of youngsters are choosing for the pliability of apartment living.
But what is encouraging the youngsters to sign a rent check over a mortgage payment? Below are some appealing reasons:
If a roof starts seeping out or a pipe breaks, handling with the issue is only a call away. Landlords and property managers are endowed with the task of handling repairs and maintaining the property. The burden of issue related to repairs usually falls on the head of the tenant instead of the homeowner. When considering the extra time and cost that goes together with home possession, renting becomes more beneficial to a millennial on a taut pocket.
In addition to the heavy mortgage and down payment, managing a home comes with many extra costs. Property owners must pay for utilities, property tax, maintenance, repairs, and even association fees. An apartment home requires utilities and rent, which millennials can manage easily without staring at their pocket again and again.
As Millennials embark on the new journey of their career, they relish the suppleness of being mobile for opportunities related to work, or the competency to explore living in new places ahead of settling down finally. Relocating from a letting property is far simpler than shifting if you have your own home. Young individuals can shift for a new job opportunity or just to try their luck in a new city without being zippered to a mortgage.
More than 70% of students graduating are dealing with the pressure of student loan, thus the idea of applying for another home loan seems unpleasant for them. While mortgage fees can be lower than a rental fee in some cities, fresh graduates probably don’t have enough money to make heavy down payment for home buying.
On the same page, some Millennials do not meet the requirements for a getting a mortgage too. Choosing to rent in their early, mid or late 20’s can be a personal choice for Millennials, or a stress-free way to gain fiscal stability before opting to buy a house later in their lives.
Ideal living situation
With the drastic boom in rental development arena, builders are paying attention to the requirements of generation Y, in terms of their way of living life. The result? Apartment houses are packed with the superlative facilities in the ideal locations within budget. Imagine living in a society with the Wi-Fi business centre, car wash, juice bar, gym, and spa. This is what every millennial can today anticipate from their apartments. That’s why; renting is a far more pocket-friendly idea for millennials who cannot pay for the hefty price label of owning a home in a good location.