Rent Culture: Death To Your Present & Future

April 30, 2019

 

Rent Culture. A culture that is shown to be the money saver of century for Millennial's however, this is exactly what it is. A Show. Millennial's are choosing to rent properties instead of buying - a mistake that will keep them broke, without assets, and without financial support if they lose their job or retire. 

 

Rent Culture is partially the result of a generational delay in entering the workforce, crippling amounts of college debt, and getting married or starting families later in life, especially when compared to previous generations.

 

The U.S. Census Bureau has recorded home-ownership levels at 63.7%; the lowest it has been in decades.  Of the 1.4 million new households that are projected to form this year, 1.3 million of those are expected to be renters.  This increase, combined with the fact that the majority of new household formations are made up of Millennial's, means the rental market is in for a huge increase.


As a whole, American home-ownership has been trending downwards for years. This is a HUGE mistake for Millennial's. 


YOU'RE RENT WILL CONTINUE GOING UP!! YOU WILL BE PAYING THE PRICE OF FOUR HOMES IN YOUR LIFETIME.

 

You could have lived in one of those (or all of them)

 

As demand for rental properties increases, the overall supply of available rentals on the market is strained. The quantity of rentals available versus the number of rentals occupied has been on a downward trend for years. In fact, it is hitting levels not seen in decades.  Overall these factors are leading to an increase in monthly rents, with median rent levels hitting new highs.

 

Fortunately for those smart and savvy Millenial's out there, it also means that there is a great opportunity to invest in real estate. The market has opened itself up to you specifically. 


Let's think about this logically:

 

Instead of renting a place to live (and throwing money away) you can buy a property out right using a government loan programs (FHA)  to get 96.5% loan with very attractive interest rates. In the US you can find affordable housing - the monthly mortgage payment could be equivalent to the cost of the rent or even lower.


Take advantage of the "Rent Culture" of other Millennial's that are blind to this opportunity. How?

 

When you purchase a home, lease some of the rooms in the house. It can pay the mortgage and you could live there while practically paying nothing. And at the end of the day, you own a home. 

In most cases it’s better to own a property rather than rent:

 

  • The principal portion of the mortgage payments is part of the investment strategy since this money goes towards building your equity and decreasing the total amount owed to the bank. Rent money goes to waste.

 

  • When home prices go up it means more equity in your pocket, instead of looking for other places to live (or working extra hours) to pay the raised rent. 

 

  • As a homeowner you have the access to specialized tax benefits granted by the government, whether it’s an investment property or a home where you live in.

 

  • The cost of mortgage payments would be lower than the rent. You could pay the mortgage with the rent 😂

As an investor you could get a nice monthly rent income and enjoy passive income after deducting all of the expenses (mortgage, property taxes, insurance etc.)
 

As a tenant you’re exposed to rent increases periodically and the owners could decide to not renew the lease, which ends up in costly time and money and the inconvenience involved in moving to another place.


To sum it up, Millennial's  need to acknowledge the opportunity to secure their financial freedom and their future economic situation. New Dawn Investments help you take advantage of this opportunity! Together, we can make your future everything you want it to be. 

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