3 Reasons This Millennial Isn’t Buying a Home — What They’re Doing Instead
Written by
Tiffany Lew
Edited by
Angela Corry
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Homeownership is the big dream for many, but one millennial has other plans. McKenzie Mack, 29-year-old personal finance influencer who wants to retire in her 40s, shared three reasons she isn’t buying a home, at least not right now.
Location Flexibility
Not owning a home gives Mack flexibility to leave her current living space and move or downsize whenever she needs to. She points out a volatile job market where layoffs are common and values the ability to pack up and move to a new job without worrying about selling a house.
Licensed realtor Omer Reiner echoes the sentiment, saying, “timing is everything. If you aren’t sure that the city where you work is someplace you want to stay for a good while, don’t take on the expense, maintenance and possible association fees you would have to handle as a homeowner.”
Better Location For The Price
For Mack, homeownership means most likely living in the suburbs — away from activity. With renting, she’s in the middle of the hustle and bustle. Her ideal type of lifestyle includes a neighborhood where walking and biking are the norm.
Plus, for her, renting saves money. She highlights their current rent of $2,800. A mortgage in the same area would put them at $6,000 a month, she said.
“If taxes and maintenance are going to lead to high costs, then purchasing the home may not make much sense,” says Mark Charnet, founder & CEO of American Prosperity Group.
No Surprise Maintenance Costs
Whether it’s a new roof or water heater, the hidden cost of owning a home can rapidly add up. Mack would rather use that money on investments while she’s younger instead of putting all of her extra money into a house.
“Home ownership carries constant expenses in the form of roof work, HVAC system replacements, or unplanned plumbing problems, ” says Founder and CEO of Fire Damage House Buyer, Daniel Cabrera.
“To those with an inadequate emergency fund, these can be economically crippling.”
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