Millennials (or Gen Y) born 1980-1995 are currently the fastest and most aggressive group who are purchasing their first homes, townhomes, condos and co-ops.
This group has been renting for a while and they have finally decided to take the plunge into ownership.
There are many reasons why they have made that decision, but here are five major ones that have helped enabled them to realize that ownership is “hands down” a better position to be in than renting.
- To have control over their living space
Being in control over their living space and deciding what they want to do with their living area; especially when it comes to painting and renovating or doing any type of updates.
It will be their money, making their improvements, adding value to their space, instead of the landlord’s. When renting, tenants are very limited to what they can do and most of the time, if they improve their space, it is on their dime and there is no financial gain for them, just for the owner. Great to be a landlord these days!
Also, if you want to have a pet, the majority of landlords won’t allow it or a large security deposit is required in the event of damage.
Having total control over what you can and can’t do rests with you as the owner, except in construction, fences etc. where you will have to check the zoning in the area, file permits, etc.
2. To have a sense of privacy and security
It is no surprise that having a place to call home, with all the comfort and security, is another reason that millennials prefer buying. As a homeowner, you have control over who has access to your home, and you are able to secure it how you see fit.
3. To live in a nicer home
Similar to the first reason, when you purchase a home, you can choose to live in a nicer home or chose to renovate a home and restore its glory. Owning also allows you to accommodate your growing family or a family member who may need to move in.
4. To feel engaged in their community
Owning a home in a community is one of the major reasons why residents become more civically involved.
The stakes are raised once your home value is directly tied to the neighborhood and community in which you live. People begin to care much more when it’s their property and not someone else’s.
5. To have flexibility in future decisions
Owning a home allows you to use your monthly housing cost as a savings account that can be borrowed against in the future.
Having this option (which one cannot do as a tenant) available during the uncertain times is just one of the many reasons why homeowners feel more secure in their homes.
I have seen over the years that choosing a location with good schools is another factor that millennials are looking for, especially if they had gone to schools that provided them a good education; they want the same for their children too!
As I have mentioned in previous articles, building your wealth over time in a fairly safe and controlled environment, allows your home to increase in value, as you pay down your mortgage.
Although the stock market is another source that can also increase one’s long term wealth, there is, I believe, much more risk, unless you are well versed in investing for the long run; or If you have an excellent stock broker that can guide you along in the right direction, honestly and credibly, managing your investments in a professional manner, so you can sleep at night.
Owning your own place provides you that special feeling of being included in a community where you will be growing roots, bringing up your children, having neighbors, barbecues and all those things that you probably cannot do in a rental.
There must be a reason that around 65% of people own their own homes, because it is the best position to be in, as a vehicle to grow your financial future.
Phil Raices is the owner/broker of Turn Key Real Estate at 7 Bond St. in Great Neck. He has earned designations as a Graduate Realtor Institute and Certified International Property Specialist.
He can be reached by email: Phil@TurnkeyRealEstate.Com or by cell (516) 647-4289 to answer any of your questions or article suggestions.
