First, it is easy for GenX to budget for rent each month. They would not face with any surprised up-keeping cost such repairing a washer machine or air conditioner. Forty-one percent of Generation X decides to rent instead of buying house to build its equity. Gallup poll also found the percentage of people own home has dropped to 61%, which is the lowest figure in more than a decade.
Second, some GenX and Millennials face with heavy debt from their undergraduate degrees coupling with soft job market. This is also a reason deferring homeownership.
Third, the prices of house have increased more than income levels in last two years.
Fourth, GenX refers a mobility rather than a long term commitment on the homeownership.
Fifth, the homeowner could lose their equity on the house based on a last recession. The house prices have dropped more than 50% in many areas. This fact scared many people.
Sixth, when Gen-ers ready to purchase a house, there is a lack of affordable housing in numerous cities and neighborhoods. In fact, smaller quantity of moderate price ranges for new houses is also a restraining.
Seventh, the prices of homes are predicted to continue increasing. Buyer would not want to buy at the highest price.
Alternatively, GenX can explore a lease option to purchase or Rent-to-Own. This purchase strategy would:
- Provide fixed costs while they live in a single-family home
- Provide a mobility option if they would not exercise their purchase option
- Lock-in a future price when they exercise their option
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Resources at Amazon Corner: (**Take additional 10% discount for all first time buyer)
- How to Buy Real Estate without a Down Payment in Any Market: Insider Secrets from the Experts Who Do It Every Day
- The 7-Step Lease Option Refinance Strategy: How to Profit in Real Estate with Minimal Risk
- Move in Now Buy Later: How You Can Have a New Home without Perfect Credit or Tons of Cash
- Rent to Own Essential Guide for Homebuyers: The Key to a Fresh Start and Richer Future