Why Millenials are Buying Motorhomes Instead of Homes
It is interesting to read articles about first time home buyers choosing to buy a cabin or motorhome instead of a house or condo. With the success of companies like Airbnb, many younger homeowners are reconsidering what it means to own a home. In some cases, buyers are looking for townhomes that may have extra bedrooms on a separate level so that they can rent out bedrooms by the night to guests wanting something other than a hotel room. Others are buying cabins and motorhomes so that they have additional rental income to offset the costs of homeownership. When their "home" is rented, they will often couchsurf with family or friends. A quick search on Airbnb.com shows that yurts, sailboats, tiny homes, travel trailers, motorhomes and small cabins are available throughout Vancouver Island. Is this a sensible alternative to buying a home?
Many new home buyers may not be aware that some recreational sites do not permit year-round living, or may have strict rules when it comes to renting properties out for a night or two. The motorhome may seem like a good investment, but it is considered a depreciating asset, so it does not increase in value. Insurance can be difficult to navigate when you are trying to operate a business, and sometimes the income earned is much lower when fees and repairs are taken into account. However, where we live and how we live is rapidly changing. In all honesty, spending a weekend in a treehouse does sound like a pretty fun experience, but only for a day or two.
According to a poll conducted by Bank of America's 2018 Homebuyer Insights Report, 72 percent of millennials consider home ownership more important than getting married (50 percent) or having children (44 percent). Because of this, home buyers may simply feel that alternatives to a home or condo are best, but without the guidance of a professional real estate agent and mortgage broker, they may make decisions that they will regret later.
Thinking about buying your first home, downsizing or "moving up"? Let our Layzell Dreger & Associates team provide the experience and expertise that you need to successfully navigate this changing real estate market.