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Home ownership getting harder for young workers
By: Ruben Veloz
EL PASO, Texas--It is now more affordable to own a home than it is to rent a home by 35 percent, however, young workers are having a harder time buying a home than they did 10 years ago.
Despite cheaper home prices, and low interest rates, many people with a college degree find themselves renting a home and it's because they don't have enough money saved up.
"It's not like I have a lot of money like in my account or savings," said Ana Laura Fuentes.
Ana Laura Fuentes is a UTEP student who wants to go into advertising, however she doesn't think that buying a home is in her near future.
"For me personally, I think it's going to take me a little bit longer because right now I am not working. I am just studying," said Fuentes.
According to a new report by the Consumer Financial Protection Bureau, people between the ages of 25-30 are having a hard time buying homes than they did 10 years ago.
The report says it's because many graduates are stuck having to pay back student loan debt.
"We usually don't have the opportunity to be able to obtain employment, or the type that would pay us the amount of money that is needed to buy a house," said Eric Flores.
Flores goes to UTEP and has a family, but says he doesn't see himself buying a home any time soon either.
"It's oppression basically it's what it is because they don't give us the opportunity to be able to obtain employment that would pay us the correct amount of money to buy a house," said Flores.
Many financial advisers recommend putting down at least 20 percent of the purchase for a home, but according to a recent study by the nonprofit Employee Benefit Research Institute, 60 percent of young workers 25-34, have less than $10,000 in savings for a home or even retirement.
Fuentes tells me it's not that she doesn't know how to save; it's just that she doesn't have the funds for it.
"My parents have taught me to save money. It's not like I don't have a lot because I don't work, but I try to save money," said Fuentes.
Many financial experts advise that you should start saving as soon as you turn 20.
You should also, have at least 6 months of living expenses saved up in a spate account in case you lose your job.
If you are planning on buying a home, make sure you also have enough to save for retirement.