Gen Y Should Keep Renting

Posted: October 3rd, 2012 | Author: | Filed under: Uncategorized | No Comments »

Renting is the obvious alternative for someone who is unready for the financial blood-sucking that home ownership entails.

But low vacancy rates have made it a landlord’s market some will say.

Don’t listen, Gen Y. Tough it out in the rental market unless you can truly afford a home, save a down payment.

Home sales are declining in many cities with prices either following along or at least not rising. The right play for people ready to buy a first home is to sit tight and let the market deflate.

Those who don’t have the means to buy a first home are in a tough spot because of our society’s preoccupation with home ownership. Young adults are the segment of the population worst served by this attitude. They can’t afford to buy a house, so they feel inadequate or cheated. Or, they stretch too far to buy a house and get bled dry by the cost.

Renting by no means has to be a permanent choice, although it can be. The key to making it productive is to start an aggressive savings plan while you rent. Estimate the cost of owning a home, subtract the cost of your rent and then put as much of the rest as possible away.

Renting isn’t a quick and easy alternative to buying, though. But when you rent an HHHunt apartment home, we help build your credit record by submitting on-time rental payments to credit agencies.

The rental market is still a better option for Gen Y than buying prematurely. Renting, at least, is a finite expense each month. Housing is infinite – there are fixed costs, plus endless discretionary expenses. Buying is not the solution to difficulties in finding a place to rent, at least not without further price declines. Instead, find a roommate and pool your resources to cut rental costs.

For information on renting an apartment in Roanoke, VA, contact West Wind Apartment Homes.

The Globe and Mail

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