There have always been debates over whether renting or buying is better. With the housing crisis in 2008 it seemed as if the debate had been conceded but was it? People are starting to regain their faith in home ownership. Who are the leaders of this movement back to home ownership? The generation you’d least expect: millennials. That’s right, a study done in March by the National Association of Realtors reported that over one third of all home buyers are 35 and younger meaning more than generation X or baby boomers.
NPR published an article about this new shift where they interviewed a few young men and women who wished to buy their own homes. They explained a few reasons why they wished to own instead of rent such as pet ownership and exhaustion from the constant moving. There are innumerable reasons why someone might want to own their very own home but it is always important to think about all the aspects in your decision making process. Thankfully, the NPR article linked to a fabulous video series by Khan Academy which breaks down all the complicated economic math of both renting and buying!
Check out the NPR article here: http://www.npr.org/2016/03/24/470974459/forget-generation-rent-more-younger-americans-aim-to-buy
Look at the Khan Academy video here: https://www.khanacademy.org/economics-finance-domain/core-finance/housing/renting-v-buying/v/renting-versus-buying-a-home
Another great article lays out 10 straight forward reasons to buy rather than rent:
1) It can be more energy efficient.
2) You can better customize your own space.
3) You don’t have to spend as much on refurnishing new spaces.
4) Through investment in the home, you are forced to save, save, save!
5) Owning allows another possible source of income through renting.
6) You won’t be kicked out.
7) You have full control and will no longer be under a landlord’s jurisdiction.
8) Rent can always go up. A fixed mortgage can’t go up.
9) Homeowners are eligible for tax deductions.
10) You can be strategic to take advantage of lower interest rates.
Check out that article here: http://money.usnews.com/money/personal-finance/articles/2012/04/24/10-reasons-to-buy-instead-of-rent