Investing one’s savings and taking on the long-term financial obligation of a home is daunting. But the payoff is extremely lucrative. Homeowners are 38 times wealthier than renters, states a CNBC report. 49% of millennials say that buying a home will most likely be their next step, says a survey by Fannie Mae. But the same survey states that 57% of young renters cited financial reasons for not buying a home. Poor credit, high down payment costs, a low monthly income, and too much existing debt were cited as the main obstacles.
While today’s homeownership rate among 25-40 year-olds is at a historic low (18%), 80% of millennial respondents to a Business Insider survey said they want to buy a home and 52% said that renting is a waste of money. Why is there such a disparity? Maybe because millennials have been discouraged from buying homes by misinformation and mythology such as: renting is cheaper;20% down is necessary; a perfect credit score is required to get loan; it’s advisable to pay off student loans first, and others.