M2 EQUITYBITES-December 8, 2014-Kinloch Partners: Rent-to-own deals can save American dream
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Encouraging younger consumers to buy real estate through rent-to-own programs will help shore up housing sales and overall real estate values, according to investor and developer Bruce W. McNeilage, co-founder of Kinloch Homes LLC.
McNeilage said younger buyers are not investing in real estate like their parents and grandparents did. This could have long-term negative repercussions for individuals and the economy as a whole.
“Buyers in the so-called Millennial generation are strapped with student debt, face an uncertain economy overall and are not getting married and starting families as early in life as their parents,” McNeilage said. “This is creating an entire generation of renters. For most people, their home is their single biggest asset. What happens in 20 or 30 years if this group of consumers doesn’t buy? Individually, they will not build wealth and as a nation, our real estate values overall will drop. It’s important that as an industry we look for ways to get younger buyers into homes.”
Zillow.com (NASDAQ: Z) predicts that millennials want–and will–buy homes. According to a recent survey by the real estate web site, roughly 42 percent of millennials say they want to buy a home in the next one to five years.
McNeilage, through Kinloch Partners and other real estate investment partnerships, sees renting to own as an excellent solution for helping millennials move from renters to buyers.
“If you put a renter in an apartment, there is little chance of turning them into a buyer,” McNeilage said. “But, if you put them in a home and work with them on creating a path to ownership, there is a good chance they will want to make it their own. Giving millenials a chance to take a trial run as a renter is a great way to get them to fall in love with the property and the concept of home ownership.”
Kinloch Partners, LLC is a real estate investment company formed in 2011. The company specializes in providing a path to home ownership for new homeowners through new construction, home renovation or investment in financially distressed real estate properties. For more, go to http://www.kinlochpartners.net.
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