Millennial Guide to Renting or Buying

When Millennials were asked: “What would stop you from going ahead and obtaining a house at this moment of your life?”  The answers varied in wording, but the concept and core reasonings were the same: “I’m not sure I’m ready for the financial obligation to stay rooted in one place.” 

As with everything in life, we cannot generalize all Millennials; it would be a safe bet that a very good amount of Millennials have already “rooted” themselves happily.

But for those who aren’t ready to make the commitment yet (or are in the midst of sincerely considering it), let’s breakdown the pros and cons of each one.

Renting

Pros

1. Flexibility: That’s a fact, you can move out whenever you want within a fairly short period of time.

2. Savings: With a steady affordable monthly payment, you have more funds available for investing in yourself.

3. Maintenance: NO entire responsibility of home maintenance

Cons

1. Wealth: NO equity accumulation, we wouldn’t have any secure, we wouldn’t own something we can call ours.

2. Remodeling: You can really make changes or remodeling on a rented property, meaning you wouldn’t be able to paint that wall the weird color you like.

Buying

Pros

1. Wealth: You will accumulate equity; remember that Houses and lands counts towards your personal wealth also when you legally own a property you gain great freedom in the use of your house and you can use this for that trip you want to do, if you know what I mean.

2. Security: Provides security on the long run for a future family in case you want to have one.

3. Creativity: Being a Homeowner allows you creative control of your property. You can alter the property, including décor changes, landscaping and renovations, to suit your needs and your style.

Cons

1. Maintenance: You are responsible for the upkeep of your new home, it’s known that all homeowners should budget about $3,300 annually for home maintenance.

2. No guarantees: You are subject to a market, so you don’t really know when the value of your house will decrease or when it will go up.

3. Pay for decades: Again, you are subject to fluctuating taxes which means that the interest rates can increase since the day you bought it

Discover more here:

My First Rental

Is it YOUR First Time?

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