Why millennials are choosing to be tenants rather than homeowners
Category Property News
For millennials (people born between 1981 and 1996), the spice of life is variety, affordability and flexibility. As a generation, millennials are focused on saving and they value different life experiences - both of which makes them more prone to renting property than to buying it. These factors, together with financial constraints and a new set of priorities, mean that there is no shortage of prospective tenants for buy-to-let investors who own property in the trendy areas of Gauteng, such as Sandton, Randburg and Akasia, amongst others.
The cost-effective nature of renting
One of the big factors which appeals to millennials is the relative affordability of renting. On the one hand, thanks to the interest rate cuts that 2020 has seen, homeownership is more affordable than ever. On the other hand, there are no guarantees of what the interest rates will do in future, and millennials are well aware that being a tenant rather than an owner means that they are spared the responsibility of paying buildings insurance, rates and levies. As a result, being a tenant rather than an owner can give a millennial the opportunity to live in a more affluent and trendy area. Saving money by being a tenant rather than a homeowner also gives millennials greater spending power for other things which may be important to them.
A hassle-free way of life
For the typical millennial, life is always busy. From work obligations to travelling, social networking and keeping active, there's always something to do. Having a landlord who is responsible for some of the maintenance of their home is therefore another great appeal of being a tenant. Many millennials are on a tight budget, and knowing that they just have to call the landlord in case of a leaking roof or burst geyser provides peace of mind.
Changing priorities
It is becoming more and more common for young people to prioritise their career advancement over settling down and starting a family. Millennials are choosing to live together and have children later in life, and for them, it makes sense to rent an apartment rather than buy a house in one's twenties and early thirties. The white-picket-fence dream has given way to dreams of a life of freedom, flexibility and adventure.
Freedom and flexibility
Millennials are well known for not wanting to be tied down. If a millennial who has lived in Pretoria all their life is suddenly offered the job of their dreams in Cape Town, he or she is likely to grab the opportunity with both hands - and this means not wanting to be tied down to a property. Due to their fast-paced and free lifestyle, millennials relish the relative freedom that comes with being a tenant.
With the rise in remote working, millennials are taking advantage of employment opportunities that come from all over the world, and being remote workers means that they aren't tied to one place and can choose to move around and explore different parts of the country as they wish to. One year, a millennial may choose to experience life in the hustle and bustle of Johannesburg. The next year, he or she may choose to experience a more rural way of life, or life in a different province. Being a tenant provides the freedom for millennials to explore all their options.
The CSi Property Group has many years of experience in helping tenants to find the right home, and in helping buy-to-let investors find the right tenant. Browse the wide variety of rental property listings or find out more about our property management service.
Contact us for more information.
Author: CSi EUF