Should milennials buy or not buy a house?April 2, 2017
There is a trend in many developed countries where Millennials (born between 1980 and 2005) are not house owners.
But they make up 19% of households (in the US), CNBC said.
A 2015 Harvard University’s Joint Center for Housing Studies said milennials were less than 10 percent of homeowners.
While millennials might be missing out on the social upsides of home ownership, real estate is not their best investment.
It said the generation of Millennials does not abide to the social upsides of the previous young generation.
That is home ownership was a significant rite of passage that signaled stability, commitment, and, often, prosperity.
Millennials are different.
This is because they do not see the return on investment of owning a property that does not provide much income.
Instead, millennials in a position to buy property should be considering how to generate additional cash flow from the transaction.
Hence they are looking at real estate that comes with the possibility of earning them an income.
Self-made millionaire Grant Cardone told CNBC that home owners are forced to continue to spend unceasingly.
He regrets buying a house at age 30, says he.
“Unless you have 20 million bucks in the bank, in cash, you have no business buying a house,” says Cardone.
“I am not saying don’t buy a house. What I am saying is that you should understand the difference between an asset and a liability,” Kiyosaki writes.
“When I want a bigger house, I first buy assets that will generate the cash flow to pay for the house.”
But a financial expert urges Millennials to invest in REIT, instead of owning a property where you will get the key and a welcome mat.
That is you get a piece of all things.
But whether millennials choose to spend their nest egg on a nest, or begin focusing on a portfolio instead.
The worst mistake is making no investment at all.