Why Millenials are not Buying Cars and Houses

Posted by Sal Galloway on December 20th, 2016

Recent research has revealed a plummet in the rate of home ownerships among the youths of today. Even the auto sector is not being left out as there have been sharp declines in auto sales over the last few years.

What could be the reason behind this?

It’s not as if millennials are broke. It may surprise you to know that a lot of young adults today can afford to purchase a home. You don’t have to be a millionaire to buy a home, and even though most youths of today are not incredibly wealthy, they hold the belief that the purchase of a home is a poor investment.

Let’s take a look at it.

The young adults of today, when it comes to money, are financially savvy. When they consider the fact that purchasing a home will take a huge chunk of their net worth and that you will be required to incur a massive debt just to buy a home, then it’s not worth it. According to their calculations, that is a horrifying investment to take on.

You see, due to the way things are being run economically, what with the recession or depression that’s affecting some companies, millennials go all out to possess some skill sets that will give them the leeway to switch jobs if the situation calls for it. This may require moving out of the state of residence to another location, depending on the new job. Therefore, owning a house could make moving or relocation a complicated process, because naturally, you would have developed some sentimental attachment to your home. This could affect your decision to change base because of the new job. Young adults fail (could it be deliberate?) to see the positive aspects of owning a home. Real Estate is the only investment that stands a good chance of appreciating over time.

The same excuse goes for owning an automobile. Nobody wants to spend hours in a traffic gridlock when they can take the subway train to work and back again. Not only does this save a lot of time, but also helps you get some stuff done, especially if your job entails using the internet via your mobile gadgets. Besides, aside from taking the risk of getting your car stolen, or nicked by a careless driver, or even get involved in a fire accident, a car begins to lose its value almost as soon as you drive it away from the car dealership. You can never be able to sell it at the exact price you bought it, and that is not a sound investment.

Millennials love to explore various options during this stage in their lives. Gone are the days when you stick to one job till you retire. Young adults love to garner experience across several fields of interest as this helps them to look professionally fit for any job within their chosen sphere or career. Sometimes, it may take up to a month or more to secure that dream job, and if this happens, it could put their car payments at risk.

These are the reasons why many youths of today prefer to rent a home or take the tram any day, any time.

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Sal Galloway

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Sal Galloway
Joined: October 1st, 2016
Articles Posted: 5

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