More and more millennials are living at home or staying in apartments for an increasing amount of time. You’ve heard it on the news countless times, and based on conversations with your friends and family who are in their twenties, you probably believe it. Low credit scores, massive student debt, high real estate prices, and a series of other factors are discouraging many young adults from looking into living in and eventually owning a house.
However, there is a way that many millennials can slowly and easily transition from renting to owning a home. Rent-to-own homes allow people to start with a rental lease agreement then transition to owning the house once their finances are in order or they’ve decided they want to stay there permanently.
Rent-to-own homes are particularly smart choices for people in their twenties because:
- They help build credit. Many millennials have low credit scores or lack credit histories, but by making monthly payments on a house and eventually taking out a mortgage for it, they can strengthen their scores.
- Millennials will be working towards owning something and therefore investing in themselves instead of throwing money away by renting an apartment.
- Rent-to-own homes allow for flexibility. People who are just beginning their careers might not be ready to settle down in one place, but with a rent-to-own home, you can take your time determining if the house and location are right for you. If you decide to move, you won’t have to worry about reselling the home.
- Young people can lock in a house price. If you think you want to buy a house in a popular area but aren’t sure if you want to commit 100 percent, a rent-to-own agreement can help you lock in a fair price before you’re ready to pay it. That way, the house won’t follow market value trends and get too expensive for your budget when you’re ready to buy.