People who are born in the 90s are coming of age. The younger millennials are now graduating from college and getting employment from various sectors. It’s expected that the rate of those who want to buy a property will increase – but it did not. It’s because the millennials are known for being the rent generation.
If baby boomers buy homes right after they got married, it seems that the younger generation has other plans. There are many reasons why millennials are not keen into buying new properties and would rather stick with renting an apartment or a condominium unit. The following are the reasons why:
Cannot afford to buy
According to a research, 75% of millennials are not buying properties because they cannot afford it. Although it’s 25% cheaper in the long run to buy a property instead of renting one, the millennials are still not able to afford it. But do not worry. A study from Apartment List says that 32% of millennials are willing to buy property in the next 3 to 5 years if they can already afford them.
Not ready to settle down
Millennials are focused on working and playing hard. Work often requires them to move in and out of a place. Because of their busy schedules, millennials are not keen in marrying right now, even though they’re already at the marrying age. Because of these, they opt to rent since they are currently not looking for stability.
Flexibility of renting
Another reason on why millennials are not buyers is because they like the flexibility that renting gives. As mentioned, they can easily move in and out of a property if their job requires it. They can easily travel abroad without worrying about the property, since there’s a landlord who will look after in. Some millennials, especially the ones who work for call centers, treat their rental place as somewhere that they only sleep in. That’s the reason why more and more choose to rent bedspace. It’s cheaper, they no longer have to think of paying the electric bills, and they can leave it without getting financially hung up.
Maintenance cost
Millennials seem to think that owning a property is too expensive, especially with maintenance. They have to own furniture, appliances. They have to pay the bills and make sure that everything is working. It’s just too much work for the busy body, globe-trotting millennial.
Buying is financially risky
Millennials also view buying as financially risky. There’s just too much to gamble, especially if you’re not going to live in it in the long run. Paying a high mortgage is simply not in their plan.
What real estate agents need to understand
Millennials will buy property – soon. They just need to grow up and form a sense of stability. The millennial generation is still pretty young and they will buy properties soon. Agents may turn their focus on baby boomers or to those who already have families, in order to cope up w