Renting is the obvious alternative for someone who is unready for the financial strain 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 Raleigh, NC, contact Auston Grove Apartment Homes.
The Globe and Mail