According to the Council of Economic Advisors, millennials are a group of Americans who were born between 1980 and the mid-2000s. Currently, millennials are the largest generation and made up one third of the U.S population in 2013. They are the new media fascination and play a major role in our evolving culture. That goes for the real estate industry as well. Studies show that Millennial’s behaviors have changed and they are moving from renting to purchasing homes. A survey from realtor.com reported that 65 percent of people ages 25-34 expressed interest in buying a home within the next three months.There is an explanation as to why millennials are leaning towards homeownership. Although renting an apartment in a big city may work for recent college graduates, the older half of the millennial generation is entering the next stage of life where homeownership is more appealing and financially productive.In the buy vs. rent debate, there are pros and cons to both options and many factors should be considered when making big financial decisions.If you have the funds for a down payment and plan to stay in the home for at least five years, you may be better off reaping the benefits of homeownership. The low interest rates could save you money in the long run, but that’s not all... In addition to the low interest rates, you can build home equity and increase your overall net worth. There are also little perks such as more predictable cost, freedom to decorate, or design, as you want, and privacy.Although, renting has perks such as minimal maintenance costs, and short-term commitment, for many financially established millennials, homeownership is the way to go.Before making any major financial decisions, it is best to discuss the pros and cons with a mortgage professional. For more information about homeownership, contact a member of the Housing Buzz Team today!
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