Despite the steadily growing home prices, the rising mortgage rates and astronomical student loan debts, millennials are finally checking out and buying new homes around Werribee. They are beating the odds and taking on second jobs just so that they can afford their dream homes. According to a study by Open Listings, some are even delaying or downsizing their wedding so that they can afford to buy a home. A move to stop renting and buy a home will benefit millennials in many ways.
Buying a home initiates a saving culture
The increase in the cost of renting over the last few years is shifting the debate between owning a home versus renting. As young people watch the rents skyrocket, they realize that it makes more sense to buy and save more money in the long run. For the sake of financial freedom in their retirement, young people should start saving early enough.
In fact, the Labor Department argues that for every 10 youths who delay saving, they will need to save three times as much every month in order to catch up on retirement savings. Buying a home is definitely one of those wise decisions that millennials will thank themselves for later.
Homeownership has emotional benefits
Although this is not a primary benefit, homeownership invokes a sense of pride. Again, when you buy a home, you’re more likely to develop interpersonal relationships with the local community, thereby creating a reliable support system that people renting.
Most people who rent don’t have that sense of permanence in the residence, so they may not prioritise strengthening ties with their neighbours. Fostering great relationships with neighbours is more important than most people realise. Strong ties with neighbours improve local security among many other benefits.
Buying a home will help you become financially stable
A home is one of those assets whose value appreciates over time. As a millennial, homeownership is one of the best ways to build long-term wealth for yourself and future family. Think of it like a forced savings account that accrues hefty interest over time. Instead of dishing out money to the landlord, you can pay down a mortgage on a house that will later become your property.
When you start paying off the mortgage in your working years, you’ll have removed a large expense from your plate come your retirement days. The last thing you need in your retirement years is to live paycheck to paycheck.
You have the freedom to make modifications
You want to give the wall a new lick or paint? Well, you don’t need permission. If the home is yours, you can modify it to whatever you want. You can change the wall colours, add a deck, replace the cabinets, and any other modifications you need. The renter does not get to enjoy this benefit. Even when they make modifications, the landlord will be the one to benefit once they move out.
Millennials who purchase homes can incorporate their dream architectural designs, especially if they want to resell the house later. It will attract more money. For the millennial, owning a home is not without its challenges; however, the benefits of home ownership are undeniable. More young people are now realising this and trying to secure their future by checking out new homes around Werribee.