So you’ve graduated from college, and you’re opting to stay with your parents while jumpstarting your career. But then the next question looms, large and intimidating: is it time to purchase a house? Given the price of housing these days, this is the kind of Millennial advice that young professionals need.
Once upon a time, buying a house wasn’t just a signifier of wealth and prosperity; it was basically an expectation. If one couldn’t buy a house, they built one. Things have changed since those days, of course. So here’s what you need to know before you start looking up ads and prices.
It’s Normal To Not Have A House Now
As reported by The Guardian, millennials – that is, those aged 18-35 right now – aren’t showing many signs of interest in purchasing houses. Since the Great Recession, this generation has exhibited the greatest tendency to make “other living arrangements” beyond independent living, or the traditional cohabitation with their spouse. 36% now live with their parents – that’s the highest that number has been since the 1900’s.
Of course, the normalization of living with their family has prompted older generations to call millennials lazy and entitled. But simple math explains the paradigm shift. The median price point of single-family homes is now at a record $321k; college tuition prices have also only gone up in the last hundred years.
Why would millennials pay for something they’re not equipped to pay for?
So the millennial advice is actually the product of common sense: it’s not necessary to purchase living space right now if you’re only drowning yourself in debt. The switch of preference to living with relatives, or in communal living spaces (“adult dorms”) is not due to an attitude of laziness. It’s simply adjusting to new status quos.
That is alright, so long as you’re capitalizing on your career opportunities to boost your earning power and – as you’re about to hear – investing.
Millennial Advice From Tony Robbins: Invest, Invest, Invest
Self-made millionaire Grant Cardone believes in waiting for the right moment to buy a house – and he regretted buying one at the age of 30. He notes that living in a house requires other expenses as well. “Unless you have 20 million bucks in the bank, in cash,” he says, “you have no business buying a house.”
For those millennials fortunate enough to find themselves in the position to buy property, entrepreneur and bestselling author Tony Robbins has some advice. That is: buy property that will provide you with additional cash flow. “If you can own real estate, real estate with an income is the one (form of) real estate that’s more valuable,” he says.
It’s either real or estate, or an equity portfolio. Both would be good ideas, as long as investments are made: “The most important thing, I think, for millennials, is to get in the game.”
With the right decisions, it’s not impossible to earn a home of our own. Yes, even in this economy.
Any millennial advice of your own? Share them below!