Why aren't there more homeowners under 30?

Question

There are so many options available, and it's always better to buy than rent..even when in college. Why aren't young people inquiring or taking advantage of these options?

I bought a condo in college - it was $30,000 and I came up with $3,000 - credit was not an issue because I had a credit card for a year and my parents said I paid rent for a year. I had a part time job which earned me $800/mth - enough to pay the mortgage, as well as I took on a roommate. When I graduated, I rented to the condo for the first year. I have since sold and made a whopping $100,000 profit. It's not an advantage in all markets, but at least inquire!

Answer 1

home ownership is very easy IF you were brought up to think like that.many folks were brought up in rentals and they are very happy to live that why .you have no land taxes no up keep bills .and if you want to go the market does not matter when you rent .so it is my opinion that folks rent and not buy because it never crosses there mind that they could buy or they like the freedom and restrictions of renting .i have own a home ever since i was 19 i am 46 now .my oldest daughter just bought her a home at 21 and my other daughter owns a home with me and she is 19.keep your credit clean and Bank well through threw money at your feet

Answer 2

Because most people under the age of 30 do not have good enough credit to get a house. I am a college student, age 23, and have tried to get a house and am always turned down. Plus, I am receiving student loans, which I will have to pay back over a period of 10 years, but I have to start making payments 6 months after I graduate. So, if I'm going to pay back my loans, I can't afford a house, anyway. The only way to do it is to work up your credit, which will take a while. Therefore, people over the age of 30 have had time to work on their credit, and most 30+ are done with college and all paid off, etc. etc.

Answer 3

I live in California. California where a 2 bedroom condo is appraised at half a million. When you get out of college, unless you are a lawyer or a doctor and your parents paid for your college so you don't have any loans, its not feasible to buy a house on the pittance they are giving college graduates these days. Most college graduates i know, are living with their parents working a part time job because the field they have their degree in says that though they have the degree, they lack experience. So they work part time jobs gaining experience, before they even qualify for a full time job in their chosen field. Then after a year or two working part time, they qualify for bottom of the food chain full time job, starting at $36,000 a year.

Hardly enough to buy a house on.

Answer 4

There are several reasons - a big one is lack of money for a down payment, or credit rating to get a mortgage. Also, young people might move to a different area - those in college are especially likely to do this for a good job after they graduate. Having a house when you're moving in a couple years is NOT necessarily a good deal - it might be a hassle to sell, and you can very likely lose money on it if you have to sell shortly after you bought, or have to sell quickly.

Another thing is that young people don't necessarily want to be tied down to anything that early.

Answer 5

They are dumb, they would rather spend $30,000 on a new mustang that put that down on a house. Its better to get a house before you have a chance to ruin your credit also. I bought land right out of highschool, way out in the country, I put $500 down and paid $198 a month for 4 acres, I got enough money to pay it off 2 years later, I held on to it, the county paved the road it was on and the property value doubled. I tried to get others to see the light, or to go in with me on some other deals, none would have it. Someone has to dig the ditches is what my dad always said...

Answer 6

I am under 30 and a homeowner. The market is very high right now to buy housing. Most under 30ers are still paying off college and credit card debt and have no clue how to budget and properly save up for that down payment.

We may see a reverse in that trend pretty soon as housing prices are starting to drop.

Answer 7

It depends on what area you are looking at. If you are reffering to the San Francisco Bay Area, some families can't even own a home! If you are reffering to some place in the middle of nowhere Kansas, I'm sure I have enough pocket money to buy plots of land, but would I want to live there where Taco Bell is considered the "nice" restaurant.

Answer 8

Perception probably. Some may want the flexibilty of renting and not settling down. Some may not be able to make the down payment or income levels requirements.

Others may be too busy having fun or on-line to get serious about the long term economic realities of picking a place to live ...

Answer 9

It could also have to do with the average age people enter the workforce, then the amount of time it takes to build savings/credit to buy. Also, buying a house is a GINORMO commitment. In my twenties, I wasn't much interested in in planning things in terms of decades.

Answer 10

well, have you looked at the economy lately? Most people under 30 are either in college or just barely making a living. At least in the United States they are.