Citizens' Issues
Why the millennial generation is not buying homes early
New York : More and more millennials (those born after 1980) are in no hurry to own a place to call it home and will buy smartphones and cars first when gainfully employed, an interesting study has revealed.
 
The perception is that millennials are the generation that would rather have the latest smartphone than a new car so it stands to reason: Why would they want to own a home?
 
“We don't have real good data on millennials, but the trend is that millennials are getting married and having children later in life and ,therefore, there's no real urgency for them to own a home,” said Yilan Xu, professor of agricultural and consumer economics at University of Illinois at Urbana-Champaign?.
 
In the paper, Xu and her co-authors examined the factors that affect housing demand of the millennial generation.
 
They found that mortgage accessibility is a key constraint to homeownership for millennials and the burden of student loan debt among millennials impedes their transition from renters to homeowners.
 
“Millennials are taking a longer time to settle down so family events related to home purchases -- such as marriage and having children -- are being pushed back,” Xu added.
 
As a result of the Great Recession, millennials who were underemployed may not have enough money for the initial down payment necessary for a mortgage.
 
Or they may have a low credit rating, which often translates into a higher interest rate on a home loan or completely disqualifies them as a borrower.
 
With millennials getting married and having children later in life, there's also no incentive for them to move from a bachelor pad to the suburbs.
 
The key factor impeding their transition to homeownership is student loan debt.
 
"Student loans are the biggest problem for this generation, potentially disqualifying millennials for mortgage loans due to low credit scores and high debt ratios," Xu noted.
 
It is a finding that should give policymakers some fodder to rethink since homeownership is associated with a number of good outcomes, Xu said in a paper published in the Family and Consumer Sciences Research Journal.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Reliance Life gets watchdog's nod for Nippon Life stake hike
Mumbai : Reliance Capital has secured the nod from Competition Commission of India for its Japanese partner to hike its stake in the life insurance arm to 49 percent with further investment of Rs.2,265 crore ($350 million), a company statement said on Thursday.
 
The tranaction with Nippon Life, is expected to peg the valuation of Reliance Life Insurance at around at Rs.10,000 crore (nearly $1.5 billion). In line with the shareholding structure, the name of the company is also being changed to Reliance Nippon Life Insurance Company.
 
Once this transaction concludes, the Japanese insurer would have invested Rs.8,630 crore ($1.3 billion) for a 49-percent stake each in Reliance Capital's life insurance and asset management companies -- among the largest foreign investments in India's financial services sector.
 
Laast month, Reliance Life Insurance had announced a market share of 4 percent in the private sector in terms of new business premium. This segment was worth Rs.285 crore for the quarter ended December 31, while renewal premium was of the order of Rs.706 crore.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Siachen survivor Hanumanthappa Koppad passes away
Hanumanthappa Koppad had served in difficult and challenging areas for 10 out of 13 years of his total service 
 
Lance Naik Hanamanthappa Koppad, the sole survivor in the Siachen mishap passed away at 11.45am on Thursday. He was battling for life after being buried under ice for six days in the Siachen glacier even as the entire nation was praying for his recovery.
 
Koppad was found from under 35 feet of ice at an avalanche-hit army post in the Siachen glacier in Jammu and Kashmir -- six days after he and nine other soldiers were buried. The bodies of the other nine have been found.
 
More than a day after the soldier was admitted, the Army Research and Referral Hospital in New Delhi had said in Wednesday evening that his condition had worsened "despite aggressive therapy and supportive care".
 
"He continues to remain extremely critical with evidence of oxygen deprivation to the brain on CT scan. There is evidence of pneumonia in both lungs. His multi-organ dysfunction state continues unabated. His condition has deteriorated despite aggressive therapy and supportive care," a medical bulletin issued on Wednesday had said.
 
Koppad was on ventilator in the ICU at the hospital, where he was admitted on Tuesday. 
 
Doctors treating the soldier, whose survival was being seen as a miracle, included top critical care specialists, head of the department of medicine, senior nephrologists and neurologists from the army hospital as well as the All India Institute of Medical Sciences.
 
Koppad and the other soldiers were hit by the avalanche at an altitude of around 20,500 feet.
 
He was found miraculously alive just when the rescuers were beginning to lose hope. The soldier was found conscious but drowsy and disoriented. He was also severely dehydrated and in shock.
 
He had pneumonia and was suffering from liver and kidney dysfunction. But there was no cold exposure related frost bite or bone injuries.
 
Prime Minister Narendra Modi went to the hospital after he was brought to Delhi on Tuesday. So did Defence Minister Manohar Parrikar.
 
On Wednesday, Congress president Sonia Gandhi wrote to Koppad's mother Basavva and wished him speedy recovery and a long life.
 
Koppad had served in difficult and challenging areas for 10 out of 13 years of his total service.
 
His postings include Mahore in Jammu and Kashmir from 2003 to 2006, where he was actively involved in counter-insurgency operations.
 
He again volunteered to serve with the 54 Rashtriya Rifles (Madras) in Jammu and Kashmir from 2008 to 2010, and later in the northeast from 2010 to 2012 where he took part in operations against the NDFB and ULFA.
 
He was serving in the high-altitude areas of Siachen glacier from August 2015.

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