“Millennials don’t want to buy homes.” It’s a phrase I’ve heard a hundred different ways from a hundred different people. From close friends to my parents, a lot of people believe millennials don’t want to buy homes. The recent drop of young homeowners supports this argument. But it’s simply not true. A majority of millennials want to buy homes, but many simply can’t afford to be homeowners. Regardless of whether you can purchase a house, it’s still a worthy investment to look at down the road.
We want homes
Believe it or not, millennials actually want to buy homes. In fact, 80 percent of millennials do. But why is young homeownership down? Homeownership for people between the age of 25 to 34 has gone down from 45.4 percent to 37 percent. So why is homeownership down if interest is high? Well, our generation is facing different situations. Millenials are getting married later, not having kids right away, and many millennials are in debt due to credit cards and/or student loans. People usually buy homes to be put in a situation where they can settle down in one place for a majority of their life. If you aren’t married and/or have kids, you’re probably not looking at settling down. And if you don’t have the money to pay for the house due to debt, you can’t even buy a home, to begin with.
Change of purpose
Homes can be a financial benefit as much as it is a personal one. Owning a home can give you several tax breaks. Your mortgage interest on a home loan can be used as a deduction on your taxes. If you use points to pay a bank back for your home loan, you can receive a deduction the year you pay back the points. Other tax breaks include making energy-efficient investments on a home, state property tax and property damage that you weren’t paid back for. In addition to the tax benefits of owning a home, you can build a large amount of wealth off of homes. If you make the correct investments and utilized the “wealth generators” of owning a home you could become extremely wealthy. It’s not as simple as just buying a home, but it’s a realistic prospect that makes homeowning even more enticing.
There is a lot to gain from home owning, but many in our generation are not in the position to do so. If it’s either for personal or financial reasons, homeowning is not happening at the same rate as other previous generations. While a large number of us want homes, we might have to wait a bit longer than other generations. But while we wait, it’s important to understand the real estate market. When you are ready and able to purchase a home, you want to have a strong understanding of the market and make the best possible investment. Whether you’re looking to build a life or to build your income, getting a home still is something to strongly consider.
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