Buying a home of your own in your 20s has many advantages, but can be a bit intimidating. Here are some helpful things to consider before you buy:
Use a reputable, knowledgeable Realtor: A referral from a friend or family member can go a long way to set you on the path to home ownership in your 20s, but if you don’t know anyone who can give you a recommendation, stop by the local realty office in the town you are considering buying. They can help pull together the posse of experts, like an inspector and loan officer, to ensure you are getting a good home that fits your needs and budget.
Don’t be shy: Ask lots of questions to get the information you need to make the best decision for you. When looking at homes, don’t be afraid to be hands-on. Turn on the faucets, look in the closets, check the quality and age of the appliances, and if you are not sure, ask your agent. The more you know, in advance, the better!
Build a cushion: Whether the house is in move-in condition or a bit of a fixer upper, assume you will have unexpected expenses. If this means taking a little more time to put some cash aside before you purchase, making short-term sacrifices for the long-term gain, it can be done- even in your early 20s.
Buying a home in your 20s is a great financial investment for your future that provides stability, builds credit, and fosters a sense of pride of ownership. Most important, it is an investment that increases in value over time and you get to reap tax benefits!
Stability: Rent increases becoming too much? No more moving every couple of years to keep expenses down. Put down roots and become part of a community.
Build Credit: Establish credit in your 20s for future purchases! Having a home loan that you pay consistently and on time is a great way to establish good credit for your future.
Pride of Ownership: Want your own outdoor space for that summer party? When you own your own home, you get to create a look and design that is all your own and share it with friends and family!
Increase in Value: No more lining the pockets of your landlord! Paying down your loan means increased equity in your home. And home values usually go up over the long term.
Tax Benefits: Want a tax credit at tax time? Owning a home lowers your liability and usually results in a pleasant surprise in April, year over year.