Who is the Renter & Who is the Home Buyer
You’ve been renting apartments and housing all your life. You’ve been putting your hard-earned money into a monthly/yearly lease instead of a mortgage that gains equity. There comes a point in most everyone’s life where they begin to want more things for themselves, to customize their living situations and quite frankly, you just can’t do that when you’re in a rental property.
Each and every month, you gain more assets. More things for your home, decorations for holidays, and overall upgrading your life at home. Regardless of whether that means new dinnerware, a new rug for your living room, a new lamp for your bedroom, always expanding. So, the real question you need to ask yourself is, since I’m frequently gaining more assets – should I rent a house or buy a house? Well, everyone’s situation is different, but we’ll go over some of the pros and cons with renting a home versus buying a house to make your home, so you can have the facts and make the best decision for you as an individual.
Renting an apartment or home
Renting a home is ideal for a temporary solution. Typically, renting an apartment or house is more of a yearly commitment with a management company that you have ‘options’ to get out of the lease agreement if needed. Many people rent their entire lives and throw away thousands of dollars to these rental companies, whereas that is okay for them. Many of these individuals tend to have jobs and not careers live generously by traveling and spending the majority of their money on entertainment. Now, don’t get us wrong, this is not everyone, but according to a recent NAI Global research study, the typical renter in 2018 are millennials which make up 65.5% of all US renters.
Also, according to Tech Target, these Generation Z renters spend more time online, have more racial diversity, and are less confident in the current economic system. More than in other generations, Generation Z expects more flexibility and the ability to work remotely for a company rather than building an in-office corporate cultured career. This route is not bad nor are we bashing it, but as Gen Z grows older each decade, they continue to put money into property management companies’ pockets.
Buying a house and gaining equity
According to NerdWallet, 75% of Americans state that buying a house is a priority in their life at some point. The study focused on 2,000 adults who live in the United States and also looked at mortgage calculator data and the Consumer Financial Protection Bureau to capture a current snapshot of home buyer sentiments. Those individuals who have graduated college, met their significant other and have decided to reproduce have a larger percentage base of buying a house as of right now, those people are Generation X and Y and starting to age into the age range of 40-60 which is where a majority of them have children who they must care for and then eventually send them off to college (if not already).
That being the case, it proves to be more of a permanent solution to buy a house then continue to rent and potentially move into a new home every 3-4 years. Signing a 30-year mortgage may seem a bit scary in the beginning, but once you’ve bought a house, you can begin to build equity in the home and focus on the rest of your life knowing you’re permanently planted for a few extra years. No need to worry about that management company jacking up rental rates at the end of the years lease anymore!
In conclusion, your situation is different than your partners, different than your best friend and different than your next-door neighbor. Everyone has different jobs, different goals and aspirations, pets, and financial situations like car payments and student loans. The one person who can have the facts and make the best living situation for you is you. If you’re tired of renting and throwing money to property apartments and property management companies, you may want to look at a building that credit score, saving a bit of money from each paycheck, and searching for that dream home you’ve always wanted.