Twenty-somethings weigh in on the rent vs buy debate

According to countless studies and older journalists with an aversion to smashed avocado, twenty-somethings are doomed when it comes to the housing market. While everyone likes to speak on behalf of millennials on the matter, these twenty-somethings are weighing in on how they really feel about the renting vs buying debate.

It’s not just about the money

OK, a lot of it does have to do with money. According to a survey by Rest Industry Super, 80 per cent of millennials found buying a house was out of reach for them. But for some, it’s simply not part of their plan. Daniel Lewis (25), who was well on his way to saving for a house deposit, decided it wasn’t how he wanted to spend his money.

“I’m not that knowledgeable about the housing market…I knew it would add a stress to my life that I didn’t want to have to deal with at this age.

“To spend that much money, you really have to have your heart in it and I didn’t.”

Twenty-somethings have different priorities

Previously living at home to save enough money, Daniel has now moved out and prefers the lifestyle that comes with living out of home.

“I wasn’t enjoying the lifestyle of living at home. My lifestyle has improved a lot by moving out and renting closer to the city.”

[quote]“I’m not that knowledgeable about the housing market… I knew it would add a stress to my life that I didn’t want to have to deal with at this age.[/quote]

Alice McKenzie (24), on the other hand, sees buying property as out of reach due to the priority of wanting to travel.

“I do worry that I won't ever be able to afford property… But I travel twice a year and I want to move to London in a couple of years so I would prefer to enjoy my 20s travelling. I'll worry about buying when I’m in my 30s.”

While it was normal for our parents’ generation to buy property in their 20s, many millennials see 30 as the new 20 and accept that buying property might need to happen later in life.

The idea that rent is dead money

While the consensus was a general agreeance with the age old expression rent is dead money, it is still seen as a preferable option to buying.

Victoria Ternen (25) has lived out of home since she was 18, and said moving back home in order to afford to buy a house wasn’t an option.

“My parents live a few hours away, so even if I wanted to I couldn’t just go back home to save money.

“I’ve spent tens of thousands of dollars on rent over the years because I wanted to study and live in the city, which was a worthwhile investment for me.”

[quote]If I get to a point where I have enough for an investment property, I may look elsewhere like Tasmania. Sydney just doesn’t even seem possible.[/quote]

Daniel on the other hand sees renting as a necessity.

 “I still think I’m not financially benefiting from it and I don’t have anything to show for renting, but my attitude has changed a lot from thinking rent was dead money to now, where it’s kind of just necessary,” he said.

Rent vs buy

While many twenty-somethings are opting to rent instead of buy, the REST survey revealed that 87 per cents of Australians aged 18 to 34 still believed home ownership is a goal for them as much as it was for their parents’ generation.

Alice believes when she is ready to consider buying, she will have to look outside of her home city of Sydney.

“If I get to a point where I have enough for an investment property, I may look elsewhere like Tasmania. Sydney just doesn’t even seem possible.”

So when it comes to the rent vs buy debate for millennials, it seems that home ownership is still an aspiration for many twenty-somethings, but rent is the most realistic answer right now.

Image: Comedy Central