You can use your 20s to set yourself up for a golden future if you stay focused. For many younger adults, that means investing in a first home. Being a first-time homebuyer in your 20s can put you decades ahead of your peers in terms of equity. Do have the buyer’s bug? Take a look at the 5 benefits of purchasing your first home in your 20’s.
1. Say Goodbye to Rent
When you buy in your 20s, you’re waving goodbye to expensive, unpredictable rents. While your mortgage will remain steady until turning to $0 once your home is paid off, monthly rents always rise. That makes it hard to budget when rent hikes can happen without warning. What’s more, landlords often raise rental prices without actually improving rental conditions.
2. You Can Get Part of Your Mortgage Paid for by Other People
If you’re a single buyer, your spare bedrooms can become income streams! Once you own, you can allow people to rent out part of your home to help cover mortgage costs. You may actually be able to get your full mortgage covered every month. You also won’t have to live alone! This method will almost certainly make it easier to pay off your house early.
3. You Get to Be in Control of Your Environment
For renters, having so little control over their immediate living environment can be depressing. Most landlords don’t allow for any customization at all! That means that little things like painting your walls or hanging some photos are prohibited unless you want to risk losing your security deposit. Once you have your own home, you call the shots. That means weekends of DIY projects that allow you to customize your home while also adding long-term value. You’ll never wonder what to do on a Saturday again because there will always be a fun project you want to take on!
4. Your Credit Will Get a Sparkling Advantage
As a person in your 20s, the credit score you’re building today can be your passport to borrowing power for anything from a bigger home to a business of your own. Purchasing a home at such a young age will help to establish a solid credit history right now. That means that you’re likely to hear a lot more lenders saying “yes” by the time you reach 30 than other people your age.
5. You Could Be in a Mortgage-Free Home by Middle Age!
Did someone say early retirement? Many people rent throughout their entire 20s. That’s a decade of paying pricey rents that ultimately help to pay off someone else’s mortgage. As a result, they don’t actually begin chipping away at their own mortgages until they are well into their 30s or 40s. Every year that you wait to buy a home is one year more that you’ll be paying a mortgage. If you buy in your 20s, you could be setting yourself up to pay off your home by the time you hit middle age. That means more room to retire early, travel often, or help out your future children with college costs!
Weighing the Benefits to Buying a Home in Your 20’s
If you’re dreaming of homeownership in your 20s, there’s no reason to assume that it’s out of reach! Many younger adults are surprised to discover that their monthly mortgage costs would be about the same as what they’re paying in rent once they do the math. In some cases, mortgages are actually substantially lower for people who move to less expensive areas when buying.