As many experts have rightly pointed out, this is very rightly the age of new trends and fads. New gadgets, new gizmos, new forms of digital currency and a variety of relationships…that about sums up the new millennial life. Needless to say, the said fads are also seeping into lifestyles as well.
For quite some time now in the West and many posh parts of India as well, young men and women are renting their new lives instead of purchasing them. To clarify, they are seeking out fully functioning, decked up homes in good neighborhoods and renting them as they are rather than paying a steep price and owning them.
Most of these people are rich-I do not need to tell you that. Only the very affluent afford to rent out a place which is stocked with facilities such as a private gym, a swimming pool or even a doorman nowadays.
They have a personal income of more than $50000 and more often than not choose places near their workplace.
And it makes sense if you look at the process from their perspective; renting an entire apartment might cost a bomb but it is certainly cheaper than buying it and then wading through mortgages and ownership. Passing the headache to the actual owner while chilling is a very millennial thing to do.
Rent or Purchase?
However, this also raises some pertinent questions. Mortgage rates are still at an all-time low even though housing prices are expected to rise, and economists say this phenomenon is by no means a bubble but will continue towards its arc at a more gradual pace owing to its constrained supply issues.
The answer to buy or rent depends on your circumstances in that case. Generally speaking, it’s the rule of thumb to not buy a house if you are not planning on living in an area for long. Renting is your best option in this case.
Part of this is because when you purchase a house you incur closing costs, a down payment, property taxes and many such things. Like I mentioned earlier, why to self-induce a headache and then wallow in debt for a long, long time?
You also need to save up to buy. If you are a person who does not earn much you will be struggling to cover costs for a long time, or it may be a great deal of years before setting aside enough money to buy a house will come to fruition.
Adding to this, millennials are more likely to rent homes in any case because of the vaunted goals one has in the current day and age. You may aspire to reach a social position beyond your reach as of now, but you need to save up in order to acquire a home and there are not enough bucks in your pocket. Renting may appear as a viable option in this case.
Also, renting allows you to find out whether you want to take the next important step into homeownership and finally get that piece of prime property you always wanted. Stay in a place for three months you will know whether you want it or not for the rest of your life.
Of course, renting a place as opposed to buying has much more to it than just the question of money. Renting is of particular interest to young people who want to try out new places, facilities and different types of modern amenities.
Someone who has recently sold his home and wants to move to a new place without the additional hassle of ownership is a prime candidate for this sort of rent lifestyle.
In a country like India though it is yet to be seen whether this sort of fad catches, but as the standard of living rises so does the aspirations of the youth. Accommodations are not very far behind.