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  1. #1
    Registered User Pro Member
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    572

    Why do recent college grads not want a mortgage so soon?

    They generally have good credit and live with roommates to stay mobile or sublet their room if a job offer comes up far from home. With a decent paying job $55k on average out of college it may be hard to qualify but if you do it collectively with 2 more people, it is $165k/yr.

    If you buy a home, get roommates, you simply rent out your room and still pay the mortgage, yet benefit from the tax deduction and the potential appreciation. Not many areas are dropping in price.



    Am I missing something?

  2. Why do recent college grads not want a mortgage so soon?
  3. #2
    Yes, you have overlooked the fact their tuition and college loan debt could be a reason why they hesitate to get a mortgage and it's more of a pipe dream. The pooling of money and purchasing a home collectively you mentioned does seem like a viable solution in certain cities.

  4. #3
    Registered User Pro Member
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    554
    Some do and some don't. There are some news reports of recent grads buying a home. However, since they lived through the depression from 2008-2010 and banks being taken over left and right they are extremely careful.

    Based on information from Trulia which has been tracking sales data, the portion of 18-34 year-olds who became homeowners rose 0.9% in 2013. This latest information differs from the latest Census Bureau data that shows ownership continues to decline for young adults, falling 0.1% for the last 12 months.

    So it comes down to who do you believe the Census or Trulia.

  5. #4
    Registered User Enthusiast
    Posts
    69
    Taking on a mortgage is a major responsibility. Taking it slow in life in this respect is better than getting a mortgage and failing to meet the terms of the contract via payments. Some rush into things and those just graduating are still young. Some may not know where they want to settle permanently at this time in life.

  6. #5
    Registered User Semi Pro Member
    Posts
    414
    That's the point too. Although you are not sure where to settle you can always rent out a home or condo you just bought IF it is in an area with a good amount of rental demand. Just more paperwork is all. I truly think there would be more recent grads buying if the housing market was appreciating more in non-major cities.

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