Why Recent College Grads Should Rent Before Owning
Sure, every mortgage payment gets you more equity. However, buying isn't always the best option for college grads. Here's why it's best to rent before owning.
A lot has been said and written about millennials, but it pays to take a serious look at why they do what they do.
When it comes to the real estate market, its clearer than ever that millennials, recent college grads, in particular, are better off renting rather than owning.
Below you'll see some examples of why rent before owning is a great idea.
Let's take a look below.
College Grads Should Rent Before Owning Due To Debt And The Job Market
The fact of the matter is that the notion of the American Dream is shifting.
Previous generations bought into the notion of getting skills or an education, staying with a company until retirement and buying a home, and were rewarded accordingly.
Today's college grads aren't having the same experience.
In fact, studies show that more than 40 percent of college grads end up taking employment that doesn't even require a degree. Further, the unemployment rate for college grads in recent years was close to 13 percent.
This illustrates that we're at a sticky time in society, as economies and the education industry are going through shifts. During this time of doubt and unemployment, young college grads are better off deciding to rent before owning property.
Finding a roommate in an apartment while working a 9-to-5 is a lot more stress-free than being tied to a 30-year mortgage with no career prospects.
It's A Renter's Market
Market studies indicate that it's in college grads interest to rent because the opportunities are plentiful.
While the country experienced an economic crisis due in large part to the housing market in 2008, renting markets all over the country have been thriving and growing.
The fact that it's not hard to find a new apartment to rent is something that these young grads are jumping on.
Cities like Austin, New York, and Denver are set to experience drops in rent in the coming years, making the potential for opportunity sweet.
Renting Means Flexibility
Today's generation enjoys more flexibility in their lives than ever, and industries are responding to it.
We've seen companies like Uber and Lyft provide a great service, in addition to freelance employment opportunities. When young people travel, they're looking for an Air BNB without even considering hotels.
The same rings true in the workplace, as millennials are looking for job opportunities that offer flexible schedules and unique ways of doing business. They enjoy freelance opportunities and working remotely, which means they're not as tied to owning property as their parents' generation.
Those who are looking to buy a home don't need to be in a rush. With rent to own opportunities becoming more popular, they have no shortage of control and flexibility over the situation.
Explore Your Rental Opportunities
If you're planning to rent out a property and are looking for a new place to live, we're the company you want to get in touch with.
At Elite Team Realty, we can help you with any need you have. Take the time to reach out to us today to learn more.