Why Millennials Should Stick to Renting Than Buying a House

Some folks consider Utah real estate market to be at its worst level for years. Now even some major real estate companies are trying to persuade the younger generation to take a risk and try their luck on getting a mortgage. According to them, now is the best time to get themselves out paying rent and instead start thinking about getting their own house.

This may be true since interest rates are low right now while rents are getting higher and higher as months pass by. According to studies, it’s actually 23 percent cheaper for people ages 25 to 34 to buy a house rather than to rent nowadays. There are also other government programs that are available right now for those people who can’t really afford to pay a 20 percent down payment.

This sounds like a great idea for people, especially for millennials. It’s attractive for people to trade in their apartment life for their very own home. It may seem like a great bargain, given that rents are getting higher by the minute. However, this kind of tradeoff isn’t as easy as it seems.

The idea of getting a home in Salt Lake City is great. There are many advantages of getting a home which includes tax deductibles and building your asset instead of your landlord’s wealth. However, if you don’t plan this carefully, then your dream of having a home might end up as a burden.

You have to think about a lot of things when buying a house. You have to think about your budget and your monthly expenses. Is your gross income enough to add another one on your expenses? Try to do the math and see if your gross income would still be able to cover your mortgage payment.  Try to weigh things out. Would renting be more practical than getting a mortgage for your home? Getting a house may sound like a great idea, but you can’t just quit in the middle of your term. Unlike renting, you don’t have any option to move to a different apartment just because you want to, you have to consider a lot of things even before you can do that. You need to through the process of selling your house just to get a new one.

Having your own house is a dream for everyone. But at the same time, it’s also a financial responsibility. When buying a house in states like Utah, having the funds to pay for the down payment is not enough. You have to consider the closing costs and the monthly mortgage once it gets approved. That’s most probably why millennials aren’t really considering getting a home just yet