There are a lot of great reasons to purchase a home, rather than renting, but the first step in that process is deciding when to buy. A lot of people in their twenties feel like it's too soon, or that buying a home just isn't something that is important to do until later in life. There are actually some great benefits of owning a home sooner rather than later, and below are 5 of my personal favorites.
1. The Investment. You've heard it before: "real estate is a great investment in your future." It may sound trite but it couldn't be more true! With 80% of all millionaires owning real estate, it's clear that purchasing a home is wise choice for your future financial stability. Most people in their 20's have roommates when they're first starting out. If you rent a home with your friends, you all pay a landlord, and you take on a huge risk of the share of the deposit you paid being lost if one of your roommates skips out on the lease, or damages the property. If you own a home, your roommates pay you, while you live there almost for free. Even though you'll still be responsible for repairs if someone damages your property, you have things like homeowner's insurance, and warranties to lean on.
2. An Early Savings Account. A lot of us had a hard time managing our spending, or creating a real savings fund in the first few years we were out on our own, and that's part of what makes owning a home such a good decision for the future. If you purchase a home for $200,000 at the age of 25, and it appreciates 2.5% a year, you could sell it at the young age of 35 for $256,000. Not many twenty-somethings are able to easily put over $5,000 in the bank every year for 10 years, but a smart home purchase could do exactly that for you, without the cash being easily accessible for impulse purchases.
3. Rental Income. None of us know what the future holds. We never know how long we'll be at the same job, when we'll get married or start a family, or what will happen with our health. When you own a home, you have an asset to lean on in more ways than just having a place to live. Having a property that you can rent out for a small profit while you travel, move out of state for a job, or begin your life with a new partner, creates a whole new stream of income, as well as a place you can always come back to if things change.
4. Freedom. Who wants to deal with the hassle of living in a place someone else painted, that won't let you adopt that cute kitten or sweet puppy, and forces you to deal with caring for their out-dated shag carpeting like it's a priceless Persian rug? When you a buy a house, it goes without saying that you can make it what you want. In your twenties you want so much to feel free to be who you are, and start building a life that feels right for you, not anyone else. Owning a home is a great start.
5. Experience. Purchasing and maintaining real estate is an invaluable life experience. Not only do you gain a more tangible understanding of things like finances and the current economy, but making such a large, serious purchase is a huge step towards growing up, and taking pride in maintaining what belongs to you.
In the end, you should only ever make a home purchase when you feel like you're really ready, but don't think that just because you're still young that you can't or shouldn't consider it. Your future self will thank you for it!
Author:Dorothy Hovard Phone: 480-204-5704 Dated: August 11th 2016 Views: 68 About Dorothy: ...
Dave Zajdzinski and the Z TEAM bring over 15 years of real estate experience to home buyers and sellers throughout Arizona. We have helped hundreds of families meet their real estate goals and Dave is consistently ranked one of the top realtors in the Valley. As a Certified Distressed Property Expert, Dave specializes in short sale transactions as well as traditional home sales. The Z TEAM is small enough to be personal throughout your sale yet large enough to handle any need with great detail.
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"Dave (and his brother, Steve) were able to short sell my house in a very difficult market. My credit was amazingly unaffected and we were able to buy another home that's 2.5 times bigger for $50/month more than we were paying for the old home. I truly don't know how he and his brother do it. They are awesome and I highly recommend their services. They are miracle workers!"