Millennials take different approach to the market
It is interesting to note that millennials are not determined to buy property in Standerton, or other parts of South Africa, as the generation they fall into seem to prefer opting for rentals. For those in other generation, it may seem surprising, but there are a number of reasons why this is the case.
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Interestingly, millennials have quickly gained the tag 'Generation Rent' as many people in this group are choosing rentals instead of buying. These people fall into the age bracket between 21 and 35, and there are a variety of reason for this approach. In the past, people would generally start hunting for a home shortly after completing their studies and entering the workplace.
However, millennials have taken a different approach, as they prefer to spend time figuring out what they want out of life, before finding a spouse and having children. This delayed approach trickles down into the property market, as they don't have an urgent need to secure a family home.
Getting finance to own a property is also a major problem. There are many millennials who want to enter the market and purchase homes, but stringent requirements from the bank as well as the need for large deposits can make it almost impossible.
Then there are the lifestyle benefits that come with renting. Having a landlord means that millennials don't need to worry about rates, insurance or utility bills, while they also have flexibility to take advantage of any new opportunities on offer.
These are some of the main reasons why millennials are avoiding property purchases in favour of rentals.