As a young adult, you probably wonder if it is the right time to buy property. In addition, you may be asking yourself what your responsibilities will be as a homeowner and how much money you will need to invest. While this decision does require some thought, at least five reasons exist for why buying property before age 30 is beneficial. This blog post breaks down the top five reasons why owning a home early in life can benefit you financially and emotionally!
1) You’ll Have More Money In the Long Run
When you buy a property as a young adult, you invest in your future. Unlike renting an apartment or home, you will not be throwing away your money each month. Instead, you will be building equity in the property- something that will come in handy down the road. Over time, the property’s value is likely to increase, meaning that when it comes time to sell, you could make a sizable profit. In addition, by owning your own home rather than renting someone else’s, you’ll be saving yourself a lot of money in the long run. Think about everything your rent check pays for each month- from utilities to repairs and maintenance. When you’re responsible for all of those costs yourself, it can be a lot of money each month. However, by owning your own home, you’ll already have those expenses covered!
2) You’ll Gain Financial Stability
In addition to the money you’ll be saving in the long run, buying a property as a young adult can also help you gain financial stability. Owning your own home gives you a sense of security and independence that renting never will. In addition, if something unexpected comes up like an illness or job loss- having your own home will make it easier for you to get back on your feet financially. You won’t have to worry about finding a new place to live if you suddenly lose your job, and you’ll be able to access the equity in the property to help cover costs until you’re back on your feet.
3) You’ll Create Equity and Build Wealth
As a young adult, getting your feet wet with real estate investment is an excellent way to create equity and build wealth. Although you may not have much income at this point in life, each month, any extra money you save by renting can go towards paying down the property’s mortgage- adding up over time! In addition, once it comes time for you to sell the home or refinance into another loan program, that value will increase as well based on inflation. For example, if you buy a house today for $100 000, but between now and when it is time to sell 20 years from now, inflation has risen prices 25%, your 100 000 dollar purchase would be equal to about 125000 dollars according to increasing values. This means even if you don’t live in the house for very long, you could still make a decent profit off of it!
4) Your Housing Costs Will Stay Low
While some expenses will go up slightly when you own a home, your housing costs remain low. As mentioned above, the majority of your regular mortgage payment goes towards paying down equity in the property each month- meaning that most monthly bills are similar to what they would be if you were still renting an apartment or condo. While you mustn’t get yourself into financial trouble with this type of investment, by making intelligent choices about how much house you buy and how long you keep it for, buying before age 30 can save thousands on housing expenses! Consider shopping for a mortgage before it is too late.
5) It’s a Great Way to Start Adulting!
Last but not least, one of the best reasons to buy a property as a young adult is simply because it’s a great way to start adulting! Buying your own home is an important milestone in life, and it can be exhilarating to have a place all your own finally. Not only that, but by taking on this kind of responsibility at an early age, you’ll learn valuable lessons about money management and discipline that will serve you well for years to come.
In conclusion, there are many reasons you should buy a property as a young adult, from gaining financial security to saving money in the long run. In addition, by starting your investment early and making smart decisions about how much house you purchase and for how long, buying before age 30 can not only be an exciting milestone but also save thousands of dollars on housing expenses!