While millennials are finding it hard to compete in a tough starter property market, this market is set to become even a little tougher. This is because the next group of first-time buyers will reach the typical buying age of 34 in the next ten years, and there are 45 million of them: 3.1 million more than the current group. This means fewer available properties and higher prices. As it is, it takes people a year and a half longer to save up for a downpayment than it did 30 years ago. So why not just remain the permanent renter?
There are benefits to owning a home that make this journey worth the wait.
Building A Legacy For Future Generations.
Property is one of the best ways for families to build wealth for future generations. The most important thing to consider when purchasing a property with the intention of leaving it as an inheritance to children is to ensure that your intentions are clear in your will. It’s also important to have life insurance that will cover the outstanding debt in your estate so that your children aren’t forced to sell off your property in order to satisfy your creditors.
Modified To Suit Your Family.
Millennials who are ready to start their own families will want to be able to customize their property to be family-friendly. This means installing safety devices, fencing in gardens, and perhaps modifying entire areas to be childproof. This isn’t always possible in a rental property, as permanent fixtures may cause tenants to lose their rental deposits, which leaves them in a sticky situation. Expanding the family can be costly, but that doesn’t mean that owning a home will be more expensive than a rental. Financing a home in a rural area could be to your benefit, as it not only allows you the space to convert and modify to meet your family’s needs, but mortgages over these properties are usually favorable with little to no down payment.
Home Ownership Is A Retirement Tool .
There are many means to build up for retirement, and owning a property is one of them. In order to make the most out of property as a means of retirement, however, is to ensure that the property is paid off. This means that the full value of the equity is available to you, should you need it. It also means that you have the chance to live your golden years without the hassles of paying rent. It can also serve as a source of income if you take on a tenant, which makes it highly versatile.
While timing and circumstances are critical when deciding to buy a house, it’s important to consider whether it suits your needs to be tied down to that location for the foreseeable future.