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With the recent surveys and current trends (here and in other countries), it seems like that today's Generation Y are leaning towards renting a space than going after the white picket fence. As of late, the rental boom has been a game changer in the real estate market, with folks under 35 shifting from owning to renting. Here are the top 5 reasons why they take a step back from home ownership and instead dive in to renting a space of their own:
Accessibility is on top of their list.
Living near the city's main attractions and hotspots is a very attractive prospect for the younger generation than having a larger space with their own backyard. They find greater comforts and convenience in living close to CBDs and prime locations surrounded by restaurants, shopping centers, entertainment and leisure spots, and key real estate developments like mixed-use urban blocks. It also seems more practical to live near the office sites and business centers and main transport terminals than deal with the metro's day-to-day hour-long traffic. Residential options that offer this kind of accessibility in key city locations and CBDs are condo units and apartment buildings. Houses in prime city locations come at a much higher price, especially those high-end properties in Metro Manila that cost around 22 to 28 million pesos, as opposed to luxurious condos that may cost around 7 to 14 million pesos.
They're not in a rush to settle down.
Current studies have shown that the Generation Y don't get married early and have a habit of shifting jobs frequently. The younger generation also tend to move places in search for a new opportunity and to explore all the other options. They don't normally settle for one thing, and it seems that they're in no rush to settle down until they've lived their life to the fullest. That's why most prefer sharing a residential space (condo unit or apartment) with their roommates than buying a house to live with their partners and start a family.
Buying a house is just too risky for most of them.
Even if they're earning more, the younger generation would rather spend it on travels, vacations, fitness, hobbies, and living the life. They're out and about in the metro's hotspots. And with no intention to settle down early, buying a house just doesn't seem to be a necessity for most of them. Investing in home ownership just seems too risky, as they get tied down to mortgage that could last for many decades. And since this generation wants to keep their options open, buying a house is met with some reluctance. With the current trends in real estate, renting a swanky apartment or posh condominium for the young and successful seems more appealing than settling in a house in suburb or subdivision along with other families.
They want full amenities and less maintenance.
Rental units offer resort-like amenities such as swimming pools, sun decks, lounge areas, fitness centers, and a sports complex. Some condominiums and apartment buildings even offer hotel-like services such as concierge and valet as well as round-the-clock security. All these facilities and amenities make renting a condo unit and other residential spaces a better option for the younger generation. With their fast-paced lifestyle, they take full advantage of the little maintenance required in their rented space. If any part of the unit needs some fixing, this can be handled by the landlord or the property management, especially for common facilities.
Living in a rented space seems more practical with little time spent here.
Because of their active lifestyle and hectic work life, younger professionals don't get to spend a lot of time at home. So instead of investing in a house and lot and thinking about maintaining the large space, it just seems more practical for the Generation Y to rent a space. Most condominium and apartment units in the city are specially designed to provide the modern comforts and bare necessities. The space may be limited, but all sides and corners are well used to meet the modern lifestyle needs of urban junkies.