The traditional measure of success – owning an apartment and a car – is no longer timely. An increasing number of young people around the world don’t want to buy them.
Numerous studies show that the generation of so-called “millennials” or people who are now 30-35 years old, now rarely buy houses, and even more rarely they buy cars. In fact, they don’t generally make very expensive purchases. iPhones are an exception of course.
In America, people under the age of 35 years are generally called “generation of tenants.” Why is it so? Some sociologists believe that this is due to the fact that the youth of today faces to too many financial disasters. That’s why people are simply afraid of taking “serious” loans.
But even this is not important. The fact is that the generation of today’s young people and their fathers’ generation have different values.
Today’s youth is reviewing the concept of success. If previously successful people were those who owned a home and a car, now those who have invested in the experience and impressions (travelers-extremals, startuppers) are in special honor.
Young people deliberately refuse to buy real estate, and even furniture, preferring to rent them. Now people want not prosperity and stability, but a flexible schedule, financial and geographical independence.
Material things simply don’t interest people. Why we should own a car if we have the Uber or Lyft? This is, in fact, a private car with driver. And the services of Uber aren’t more expensive than owning a car.
Why we should buy a house in a beautiful place and go there for a vacation, if the accommodation can be found on Airbnb anywhere in the world? You do not have to overpay for rent or buy a property in a favorite country. It’s the same with the real estate in your hometown. Firstly, you don’t know how long you will live where you live. Secondly, why to take out a mortgage for 40 years, if you can accept the fact that you’ll spend the lifetime in a rented accommodation?
The very concept of ownership of things is no longer timely.
James Gamblin, a columnist from Atlantic explains the phenomenon as follows: ” Over the past decade, an abundance of psychology research has shown that experiences bring people more happiness than do possessions. The idea is that experiential purchases are more satisfying than material purchases. ”
This thesis is confirmed by the Psychological Science journal.
- “It turns out that people do not want to hear stories about where you bought a house. They want to hear how you have spent a wonderful weekend.”
Amit Kumar, a doctoral candidate at Cornell University
- “Even a bad experience eventually becomes a great story.”
- “Social interaction between people is crucial in the matter they will be happy or not. So you need to talk to other people and have a lot of friends. Of course, others will be more pleasant to hear about how you went into a crazy journey or how you have lived a year in a wild country, and not about how many apartments you’ve already bought.”
There’s something else. The fact is that the things we own, especially if they are very expensive, make us worry about their condition. Buy a car and you’ll wince every time someone’s alarm worked outside. Buy a house, upgrade it with expensive technologies and you’ll be afraid of being robbed. Not to mention the fact that cars may be scratched crushed and extra expensive TVs tend to break down after a year of work. No one will take the experience you got.
Our parents were not able to travel as cheaply and as often as we do. They have not had the opportunity to have fun as we now have fun. They were not so easy to start a new business as we are. Therefore, they have invested in houses and cars, and we don’t want to do so. In the end, any of our purchases, if it is not a house or apartment, will be depreciated some time. And if you remember how quickly real estate gets cheaper due to the crisis, everything becomes even more obvious.
Therefore, we recommend you to invest in experience: it won’t be depreciated and it cannot be stolen.