Delay buying your first home is putting you at huge risk of being a long-term renter

But complaining about a lack of affordability isn’t going to get them anywhere: instead, they need to starting turn attitude into action.

The fact is: the number of first-home buyers is dwindling.

This is a massive concern when you consider a home is the biggest asset the average Australian has when they retire.

But now, for the first time, we’re facing a generation of lifetime renters.

Millennial renters could easily spend over $1.25 million on rent during their lifetime.

And in the end, they won’t have anything to show for it!

Rent money is empty money.

It’s throwing money into paying off someone else’s mortgage.

The alternative is investing your money into an appreciating asset.

To do this means getting out of the rental hamster wheel and buying your own home.

Now, I can see two key reasons why young people are delaying a home purchase.

Millennials are either struggling to enter the market because they can’t afford it, or because they aren’t prioritising the task of ‘owning a home.

I can understand why our younger crowd is on the fringe.

The market is expensive, and growing more so, particularly in white-collar hubs where the jobs are.

Added to that, there’s also a negative presumption – heightened by media hype – that it’s not possible for young people to get a foothold in the property anymore.

But that’s not always true.

There are several avenues available to our Millennials that make it possible to enter the market.

I also firmly believe that it’s vital for Millennials to prioritise real estate ownership – despite the planning and sacrifice that it takes.

The earlier, the better.

Why? Because delaying only perpetuates the unaffordability cycle.

Prices won’t suddenly drop significantly in the next year or two, making it easier to jump into real estate.

Every year of delay equals lost capital growth, a step lower on the ladder, and thousands of dead-end rent dollars.

In an ideal world, your first home should be your own.

You have to live somewhere for the rest of your life, so the person who should ideally own that property is you– not your landlord.

A home is the biggest asset you’ll own and overtime as it increases in value and you pay down the mortgage, you’ll be able to unlock the equity that can be used as seed capital to buy further (investment) properties.

Come retirement, you’ll own your own home – worth considerably more than the purchase price and several investment properties that generate enough income to live comfortably.

RealRenta has all the tools that a property manager has, but at over ¼ the cost of a property manager.

Join now and the cost is less than a cup of coffee a week to manage your rental property

RealRenta also has a free vision, so why not check it out

Jason Gwerder
Wednesday, 15 September 2021

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