Young Homebuyers - What is the right age to buy a home?

Buying Young - Is it Ok to buy a home at a young age?

When people ask what is the right age to buy a home, there really is no one age fits all answer.

Here in the US we generally have the attitude that there is nothing wrong in buying homes early in life. If the buyers personal situation is right, age doesn’t really matter. Of course younger people can generally afford less but this is not always the case. We often move house and rent out homes we once lived in. Buying a home is part of the American Dream. A first home is often a starter home and there is nothing wrong with that concept. As incomes grow and situations change you can sell the home and upgrade or rent it out and hopefully have an income.

There are some home buyers out there who are really quite young. Recently, and by that I mean since the crash we often hear that homeownership is not for everyone, but this doesn’t mean just because you are in your twenties that you shouldn’t buy a home.

When can it make sense to buy young?

Home prices and interest rates are low.

The interest rates are still at a historical low. You have a reasonable income and can afford the mortgage payments. You might be getting in to a home now which you otherwise would not be able to afford. If in the next few years interest rates and home prices go up in your area then you might find that you can no longer buy the same home. In this case you might regret your decision down the line

You spot a home and it is an incredible deal. Similar to the point above. The home is a real deal and you can afford the home. The seller might be distressed or just want out and the home is a great fit for you. There really should be nothing to stop you considering the purchase.

You have a nest egg which is good for a down payment and the payment on the home is comparable to any mortgage including additional costs for taxes, maintenance etc. you might pay. You are renting or live at home and feel that you are ready to move out and in to your own home. If you have the cash and chose to make the investment in your own four walls, why not?

When you plan to stay in the area. Not everybody wants to travel the world. There are plenty of people who just have no desire to move from an area and for those who want to stay put getting a home early can make a lot of sense. You have a roof over your head and you can afford the payments. The sooner you start the sooner you can live mortgage free in your own home.

Your independently wealthy and you want the home. Well this is a no brainer. In this case why not go ahead and enjoy your own home. 

You do not want to pay someone else’s mortgage.

Many renters realize that they have been paying someone’s mortgage just not their own. This is a motivating factor for many to not rent but to buy their own home.

Buying Young - Is it Ok to buy a home at a young age?

When people ask what is the right age to buy a home, there really is no one age fits all answer.

Here in the US we generally have the attitude that there is nothing wrong in buying homes early in life. If the buyers personal situation is right, age doesn’t really matter. Of course younger people can generally afford less but this is not always the case. We often move house and rent out homes we once lived in. Buying a home is part of the American Dream. A first home is often a starter home and there is nothing wrong with that concept. As incomes grow and situations change you can sell the home and upgrade or rent it out and hopefully have an income.

There are some home buyers out there who are really quite young. Recently, and by that I mean since the crash we often hear that homeownership is not for everyone, but this doesn’t mean just because you are in your twenties that you shouldn’t buy a home.

When is it probably an idea to wait?

If you don’t know where you’ll be in a couple of months let a lone a couple of years time, then you probably don’t want to saddle yourself with a mortgage. Homes are generally not a good investment if you aren’t planning to stay in them for at least 5 years. There are exceptions to this rule but buying the wrong home is usually a bad idea.

You plan to go to school and your income is going to drop.

In this case you should wait. If you know that you will not be able to afford the home in the future, don’t put yourself under any undue stress. Now is not the right time.

Not looking for the responsibility of Homeownership

Buying and renting are different animals. If something doesn’t work in a rented home you can 

just call the landlord or leasing office. When you buy it is your responsibility to maintain the home and the bills involved with home ownership are 

Currently you could afford a home but you expect your financial situation to change in the next few years and you could then afford a home you would like more. Then there is nothing wrong with waiting.

Does anyone have any comments about the right age for homeownership? We would be interested in hearing your take and of course helping buyers of all ages find a home that works for them.

The LR Group

Tel: 407-593-8234

www.homesinlakenona.com