Hollyann Heller
7/24/16
Real Estate Analysis
Paper 2
How Student Loans are Hurting the Real Estate Market Student loans are commonly used to help pay for college, and most college student’s use this strategy in order to pay for their education. One thing about student loans that people try to put in the back of their minds is that they all need to be repaid eventually. According to the article, “A Look at the Shocking Student Loan Debt Statistics for 2016,” it mentions that there is $1.26 trillion in U.S student loan debt and the average monthly payment for the student loan can be around $351 for the average 20-30 year old. This money adds up and can be very hard to pay back once you are out of college and looking for a job in the real …show more content…
This is because 42% of graduating students are delaying moving out of a family members home into their own place or how 21% of them are renting places with roommates. According to the National Association of Realtors (NAR) and non-profit American Student Assistance, “72% of non-home owners who are current on their student loans believe that their student loans are hindering their ability to buy a home.” We all know that having debt will stop you from purchasing large items such as houses, but the real problem now is that student loans have tripled in the past decade and are rising above …show more content…
“Homeownership requires more than simply paying a mortgage each month. It carries additional recurring, as well as unexpected, expenses that renters don’t face.” Yes, a person with loans may have the money at the time to purchase a house, but they cannot do the up keep. If the rent, they have a landlord or someone that can respond and pay for a leaking roof, when you’re air conditioning breaks, your gutters need to be cleaned out, or if you building/house needs painted. All of these expenses are covered unless you buy and own the place on your own. The reason why realtors are experiences lower offers for house is because people with loans may be willing to buy a home but if they’re smart and know how to use their money, they will try to purchase a house that will cost less than what they can really offered, in order to maintain the
7/24/16
Real Estate Analysis
Paper 2
How Student Loans are Hurting the Real Estate Market Student loans are commonly used to help pay for college, and most college student’s use this strategy in order to pay for their education. One thing about student loans that people try to put in the back of their minds is that they all need to be repaid eventually. According to the article, “A Look at the Shocking Student Loan Debt Statistics for 2016,” it mentions that there is $1.26 trillion in U.S student loan debt and the average monthly payment for the student loan can be around $351 for the average 20-30 year old. This money adds up and can be very hard to pay back once you are out of college and looking for a job in the real …show more content…
This is because 42% of graduating students are delaying moving out of a family members home into their own place or how 21% of them are renting places with roommates. According to the National Association of Realtors (NAR) and non-profit American Student Assistance, “72% of non-home owners who are current on their student loans believe that their student loans are hindering their ability to buy a home.” We all know that having debt will stop you from purchasing large items such as houses, but the real problem now is that student loans have tripled in the past decade and are rising above …show more content…
“Homeownership requires more than simply paying a mortgage each month. It carries additional recurring, as well as unexpected, expenses that renters don’t face.” Yes, a person with loans may have the money at the time to purchase a house, but they cannot do the up keep. If the rent, they have a landlord or someone that can respond and pay for a leaking roof, when you’re air conditioning breaks, your gutters need to be cleaned out, or if you building/house needs painted. All of these expenses are covered unless you buy and own the place on your own. The reason why realtors are experiences lower offers for house is because people with loans may be willing to buy a home but if they’re smart and know how to use their money, they will try to purchase a house that will cost less than what they can really offered, in order to maintain the