Millennials opt to rent rather than buy

You may have bought property in Secunda years ago, or find yourself on the fence about jumping into the market, and if the latter option relates to you, then it might be because you are part of a generation that prefers to rent over purchasing. In an article on the Private Property website recently, they focused on millennials and discussed why this generation is quickly becoming known as ‘Generation Rent’.

Purchasing property has always come as sound advice from generations past, as it allows you to invest your money in an asset and allows for you to make profits in the long-term. However, renting comes with its own unique benefits, and it seems like those between the ages of 21 and 35 are opting to choose rentals over their own home.

There are a number of reasons for this, but it mostly comes down to lifestyle requirements and the tough economic conditions. Firstly, millennials are not as focused on settling down straight after they study and enter the work place. Instead, they will focus on life goals before getting married and having kids, which means that their need for a family home is also delayed.

On the financial side of things, millennials wanting to purchase a home can run into a number of obstacles when trying to obtain finance. Banks are strict in terms of their requirements while the need for a large sum of money to put down as a deposit can be beyond the budget of most millennials.

There is also the lifestyle aspect, with millennials opting to rent in upmarket areas and have more spending power, rather than investing that money straight into a home. By renting, they can avoid having to deal with rates, utility bills and insurance. They can also put the responsibility of maintenance onto the landlords.