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Why you should start planning to buy a home in your twenties

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When you’re in your early 20s, life may seem like an extension of high school. You’re an adult, but life’s responsibilities aren’t quite upon you. Many of your bills may still be paid by your parents. Keep in mind, however, that you’ll want to build some financial security for yourself. Planning to buy a home should be a priority for several reasons. Secure your future with millennial investments today.

https://eugeneschneur.wordpress.com/2017/06/16/why-you-should-start-planning-to-buy-a-home-in-your-twenties/

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Why you should start planning to buy a home in your twenties

  1. 1. Why You Should Start Planning to Buy a Home in Your Twenties When you’re in your early 20s, life may seem like an extension of high school. You’re an adult, but life’s responsibilities aren’t quite upon you. Many of your bills may still be paid by your parents. Keep in mind, however, that you’ll want to build some financial security for yourself. Planning to buy a home should be a priority for several reasons. Secure your future with millennial investments today. TWENTY PERCENT IS THE NORM Before the Great Recession of 2008 and 2009, you could put very little down on a home to outright buy it. There was virtually no planning to a home purchase. In today’s financial climate, lenders want more commitment from their buyers. It’s not uncommon to see a lender ask for 20-percent down. For a home that costs about $200,000, you’ll need $40,000 just to start the purchasing paperwork. Planning for a real-estate purchase is crucial when you’re looking further into your future, such as the late 20s or early 30s. RENT ONLY RISES Another reason why you need to plan real-estate purchases now is rising rental costs. You may live in the college dormitories now, but renting an apartment may be your next move. Depending on the location, your rent can be $1,000 or more. You receive no investment opportunities when all of your money goes toward a large, rental price. Ideally, rent for only a short period so that most of your funds funnel into a purchased home that gains value. Rent will only rise as time goes by, which makes the landlord rich instead of you. BUILDING WEALTH Buying a home simply builds wealth. Keep in mind that you’ll pay down the balance over time, which leads to equity in the bank. The property may also gain value too. Market prices change from month to month so the home’s value can climb to extraordinary heights. Maintain the home so that it has a value that can
  2. 2. be used when selling time arrives. You may be able to purchase more real estate in your 30s and beyond. Home buying may be an intimidating venture in your early 20s, but there’s help during many of the phases. Talk candidly with your lender, real-estate agent and knowledgeable loved ones. Every person will have a solid tip to help you through the planning and buying process. With one property under your name, you’re on your way to a successful future.

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