When You’re Considering Homeownership in Your 20s
This post is featured on behalf of Stacey White.
As if you haven’t got enough to cope with this during your twenties! You may be living living in a small apartment with a roommate that you don’t get on with, but the apartment is nice with great amenities in a great location and you just can’t bear to leave (we’ve been there).
But on the other hand, the stress of saving up enough money for a down payment might seem impossible. Older generation wonder why we’re “wasting our money on rent when we could potentially own a property?” There are many factors that play into young millennials’ lives that these older generations simply don’t see.
Let’s take a look at the process of owning your first property in your twenties:
Putting Money Aside
For down payments on a mortgage, it can be as much as 20 percent of your overall home costs. This is a lot to cough up in one go, so you need to start putting money to one side to make life easier for yourself in the future.
This can be difficult, especially if you are a single professional, saving on your own. Even if homeownership isn’t in your immediate future, setting aside a small amount for when it is, or for when/if you choose to get married, you’ll have more options down the line.
You Have Time to Look Around
The temptation for a lot of people is to go on the property ladder as soon as possible and settle for any property, and the common excuse is that it’s a fixer-upper, and in reality, the fixing will never get done.
As a result, it’s much better to try and go for a dream property or somewhere that is in a desirable area. Not only will you have a better home, but it will be worth more in the future, you can see properties for sale here. Keep in mind that the area matters for property value as well.
It’s always important to not settle for the first property you find, you need to make sure you do your research and find a desirable area that doesn’t just suit you, but is also going to net you a decent profit down the line when you sell your property off.
Taking time to look around at different properties before you buy will give you ample opportunity to learn what it is you like and don’t like about homes and areas.
Stay in Your Career
This may be something that didn’t even cross your mind. In the eyes of the lenders, it’s very likely your career and paycheck will be considered when it comes to getting a home loan. So it may make sense for you to become settled in a career before you think about purchasing a home.
Getting your dream home is not easy in the modern market, there are more than these three sacrifices that have to be made. If you are really keen on getting a home now, it’s worth thinking about these aspects first.