Renting VS. Buying A Home
A decision every Millennial must make!
History shows that us Millennials don’t agree with the traditional ways of the world. So we change the world.
We have spent the majority of our lives creating, innovating, and breaking barriers that our parents accepted. We have enhanced communication, made life faster, and owned the future in the present!
But there’s is one industry that we haven’t fully committed our talents to: REAL ESTATE! But I’m sure that will change in due time.
With the rise of AirBnB, WeWork, & Breather we have found ways to occupy real estate without actually owning it. As a Millennial real estate investor I’m intrigued on what’s to come in the next five years. One thing is for sure we will all make decisions on how we choose to live and options tend to be the same: Rent/Buy/Live With Parents. But which is the better option? I’ll stick to renting vs buying a home since nobody WANTS to live with their parents as an adult….. At least I don’t!
Renting VS Buying:
I’m going to start by saying there’s no #1 option each has its advantages and the better option depends on the lifestyle you want… ok you can stop reading, thanks for your time! Lol just kidding. As a real estate investor specializing in rehabbing and developing smart homes for Millennials I encourage buying (just in case you were wondering what team I’m on) but one day I’ll build a portfolio full of rental properties, so in a couple years I may be on different team. Let’s break it down!
- Lower carrying cost (Home improvements, taxes, insurance)
- Common Areas (Swimming pools, workout rooms, lounges)
- City lifestyle usually walking distance or a quick Uber ride to entertainment, work, & malls.
- Usually smaller amount of upfront cash
- No return on investment (only paying for shelter, no equity, dead money)
- Owner’s Rule (You have no control)
- Not an owner (Your not building wealth)
- No tax advantages (Landlord wins)
- Landlords sometimes are a pain the ass (Facts Only)
- Return on Investment
- Greater Privacy
- Build Credit Score
- Owner of the castle (Pride in your property)
- Control (Want to throw a wild party? Do it!)
- Building Wealth (Equity)
- Fixed Mortgage (Typically lower than rent)
- Property Interest & Taxes are deductible
- Higher upfront cost
- Higher Carrying Cost (Utilities, Home Improvements, property taxes, homeowners insurance)
- Decrease in mobility
- Long term commitment
Like I stated earlier there is not necessarily a better option, it just depends on your life goals and situation. As a homeowner I must say its pretty cool to have your own home when majority of your friends don’t.
If you like this post show me some love!!!!!
Connect with me firstname.lastname@example.org