Why Do Millennials Prefer To Rent Rather Than Buy Properties
The real estate industry has always been a hotbed of discussion and debate. With the current state of the economy, many are wondering if now is the time to buy or wait for a better opportunity.
Millennials seem to be making the decision to rent rather than own. This is due in part to their upbringing, where they have grown up with a strong focus on self-reliance. They are also more likely to prefer flexible living arrangements such as apartments over houses because they do not want to commit themselves financially to a single property. Following are some reasons why millennials prefer to rent rather than purchase:
- Rental income is tax deductible
If you have rental properties, then your annual earnings will be treated as business expenses. In addition, landlords can deduct interest payments from their taxable income. This means that if you pay less taxes on the money earned from renting out your properties, then it’s an even greater incentive to invest in them.
- There is no risk of losing the home when you lose your job
Unlike homeowners who might need to sell their homes to make ends meet if they lose their jobs, renters do not have this problem. If you get fired, then all you need to do is find another place to live. Of course, there are still risks involved in letting someone else take care of your home, but these risks are generally minimal compared to those of owning a house.
- You don’t have to worry about maintenance costs
Homeowners usually end up spending thousands of dollars every year on things like fixing leaking roofs, painting walls, and repairing other problems with their homes. While it may sound great to save money by avoiding these costs, it’s important to remember that this comes at the cost of having to hire contractors or professionals to perform repairs.
- It’s easier to move
Owning a home means that you’ll probably have to go through a lot of paperwork to change addresses. On the other hand, renting a home allows you to simply pack up and leave without any hassle. Of course, this only applies if you plan on moving somewhere else within the same city. Moving outside of the city limits requires some planning.
- The security deposit is already paid for
Most people think that buying a home means paying a security deposit. However, with rental properties, the security deposit is already included in the monthly rent payment. As long as you follow the rules set by your landlord, you should be able to avoid any damage to the property.
- Rental prices are lower
Renters are typically charged lower rates than homeowners. Since the price of rent depends on how much space and amenities the apartment offers, landlords often try to offer their tenants incentives to sign longer leases. For example, landlords might give discounts to renters who agree to stay for three years instead of one. This way, landlords can keep their occupancy rate high while reducing the number of vacancies.
- Rental properties are easier to manage
Since you’re not responsible for maintaining the property yourself, you can delegate most of the tasks to a property management company. This makes it easier to focus on other aspects of your life. In fact, many landlords hire professional property managers to handle the day-to-day operations of their properties.
- You can easily upgrade
Upgrading a home is difficult for homeowners because they have to find the money to do so. On the other hand, upgrading a rental property is relatively easy since you can simply ask your landlord to pay for it. In addition, landlords usually have more flexibility in terms of what they can charge tenants.
- Your home is portable
Your house may become obsolete as technology changes. If you own a home, then you’ll need to spend a lot of money renovating it every few years. If you decide to sell your home, then you’ll have to deal with the hassle of selling your home and finding a new one. On the other hand, renting means that you can simply move somewhere else.
- You can avoid financial burdens
If you’re considering buying a home, then you’ll have to come up with a down payment. However, there’s no requirement to put down a large sum of money to buy a rental property. Instead, you’ll have to pay a portion of the rent every month. This is especially true if you plan on staying in the property for a long period of time.
Final Words
Owning a home is a major investment, and it’s important to weigh the pros and cons before making the decision to buy or rent. Renting may seem like a safer option at first glance, but it’s important to consider the risks involved. If you’re willing to accept these risks, then renting might be the best choice for you. Also, if you’re interested in purchasing a home, then it’s important to make sure that you choose the right lender. Make sure to research your options carefully, and only work with lenders that you trust.
