These statistics aren’t surprising because the millenials probably don’t have stable incomes, or are just getting started on their ‘dream jobs’. As for the maintenance costs, that’s a shocker for most first-time home buyers; a lot of people get distracted by all the mortgage (and property tax) figures, and they forget about utilities, HOA fees, and other
miscellaneous expenses (repairs etc).
Not quite true. It’s all about maintenance. There are hundreds of thousands of homes built between the 50’s and 70s that are still in good shape. Likewise, I’ve seen several newer homes getting junked. Maintenance ni muhimu, especially when it comes to plumbing. A minor water leak, if not fixed on time, can cause significant damage even to a new home. The folks most affected by depreciation are the ones who bought at the peak of the market; right now the market is fairly stable and home prices are gradually going up. I guess the millenials are concerned about depreciation because their intention is to buy and sell after a short period before they settle down and start families.
What @Top-Gun hasn’t factored are the chances that rentals and other businesses can fail, but a fully paid off house is yours to keep. Hasn’t the pandemic taught you anything? Tenants who couldn’t pay rent were evicted into the cold night where their exposure to the virus was increased! If you’re a landlord, guess what, no cashflow for you either. This idea of depending on people (tenants) for your income is quite risky. Life happens, as we saw during the worst phase of pandemic. Since housing costs top the list of most household budgets, I think it’s wise to ensure you have a guaranteed roof over your head. Food and other expenses are quite cheap in comparison to housing.
Jenga nyumba uishi… hiyo pesa umetumia kujenga ilitoka wapi? Kwenye ilitoka fanya hizo ventures za kuleta pesa… I have Egyptian colleagues who were big in money market etc huko kwao, after Arab spring jeshi iingie, currency ilidevalue by half compared to dollar wakajua hawajui
Going the business route requires being prepared for business. There are people who can’t put up with all the hassles of being a landlord.
Am also all in favor of biashara and so, separating business from personal house needs, you need maximum cash flow from investment and you need a low expense place to stay.
With due diligence, your own home will always be lower expense than a rental (mortgage) of the same level. Your first home doesn’t have to everything you want but it will help you save a lot in a couple of ways.
Home equity
The paid off portion of a home comes back to your pocket. Rental itapoteza hiyo portion because you never own any part of the house despite the payment
Non fluctuating price. Fixed mortgage is good especially in a volatile market
You can improve it to your liking
As for income, you are now free to invest in any market/opportunity you want, including other houses though there are other avenues with better ROI.
Living in your own house Vs a rented one is a matter a personal choice dependent on various factors such as disposable income etc. However, it’s one thing to build rentals n it’s another thing to get tenants. Have lived in a plot where the landlady always struggled to get tenants despite having taken a huge loan to build them. Building your own home is expensive in addition to spending on bills and maintenance costs every month but that’s the nature of homes. It’s not just unique to some people to pay bills or maintainance costs. Whether you live in a rented house or your home you still have to pay bills, the rent you part with is what is used to maintain the rented house n profit to the owner which in the case of your home it’s the maintenance costs. So in both cases you’ve to spend.