Millennial’s: Changing Preference from Renting to Buying
Flats for rent/buy? Not sure which one to opt for as a millennial? Check below to find out…
If you had the right to choose between owning a property rather than taking one on rent, the advantages associated with the same have been considered significant over the times:
· Not having to survive on the whims and fancies of a Landlord
· The Emotional security associated with coming back to your own home
· Doing away with uncertainties of terminated rental contracts
· Choosing exactly the type of house one’s desire and furnishing it as per one’s tastes
· Improved financing options
· Associated tax benefits
· The fact that own home is considered to be a long-term investment
· Last but not least, social recognition, which unfortunately is still skewed in favour of owners rather than tenants
Millennials think differently:
While the dream associated with building/buying an “own home” features on every person’s wishlist, the millennials, particularly those working in top Tier cities, have a different take compared to previous generations, on the timeline for making this major investment. For working couples, where a significant amount of time is spent outside on job-related pursuits, if the rented accommodation serves them the desired facilities with a not-too-interfering landlord, the investment on an own home is usually deferred till they are almost mid-career.
This has resulted in a mindset where millennials started thinking of acquiring their own homes after the age of 40 in most of the metropolitan cities. The younger brigade has been more than happy to have rented accommodation near their workplace, serving them with their basic necessities. Flats for rent/buy board does have a different effect on them than their senior generation had in their age.
Are recent developments changing this stance?
Working from Home: The COVID-19 pandemic has globally impacted, not only businesses but also individual lifestyles. Current working styles have undergone a major change, wherein “work from home” has become the buzz word. Health-conscious people would in the future also try to maintain the social distancing norms and businesses, which have implemented this new work style successfully, will not be very likely to do away with this ‘new learning’. Reduced ‘workplace seat costs’ (office rent, cost of electricity and other amenities) with the same outcome in terms of work is a major advantage that many businesses have identified. Hence, the new millennial will now be spending more time at their homes. This is expected to lead to a change in mindset favouring acquiring their own properties rather than continuing to pay rent.
Predicted Drop in Prices: The real estate industry has also been impacted by this pandemic. An industry, which has usually not believed in price correction to address falling demand, is changing practices. Industry experts believe that plagued with their unsold stock, the Industry may have to go for a drop in pricing. In a market where buying pattern is significantly impacted by price, the decision to acquire an own property might get the boost.
Advanced Technology usage: Most real estate companies are embracing “technology” to bring forth buyer-friendly tools, which are also adopting the current ‘social distancing norms’. They are hiring professionals to create videos that give the customers a “virtual walkthrough the property” from the confines of their homes. These videos are creatively designed to serve as handy reckoners for the prospective customers to estimate the correct dimensions of the property along with its looks. The details of most properties are now easily available online, minimizing the not so preferred broker-related hassles, previously associated with property searching.
Impact of Real Estate Regulations Act (RERA): There have been multiple instances in the pasts, where people have invested for their dream home but had to suffer the brunt of unscrupulous practices by builders. Stories of such experiences have often discouraged prospective buyers from taking the plunge. The introduction of the RERA Act in 2016 and its subsequent implementation in the states protects consumers from such unscrupulous practices and gives them access to a tribunal that addresses all such grievances.
Better access to Finance: In order to keep their momentum going in and post the COVID-19 scenario, it is expected that Financers will be coming out with better lending opportunities along with a faster turnaround time in providing the credit. This could also create a winning momentum towards the decision to purchase.
The above factors are expected to make a change in the stance of millennials in favour of Buying properties. Real estate companies are keeping their fingers crossed, hoping that this happens as we speak!
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Flats for rent/buy? Not sure which one to opt for as a millennial? Check below to find out… If you had the right to choose between owning a property rather than taking one on rent, the advantages associated with the same have been considered significant over the times: · Not having to survive on the whims…