Buying a home in your 20s might seem like a dream that can never come true for some people. This is because a bigger percentage of these people are mostly recent graduates struggling with job stability or even student loans.
On the other hand, renting a home might look like the best idea for this generation. This is because they get to live in a house that they can afford and do not have to worry about other responsibilities such as home maintenance.
That notwithstanding, millions of people are buying homes in their 20s. They make up the biggest percentage of home buyers in some countries such as the United States of America. However, is it better to rent or buy in your 20s? Here are some factors to consider before making the decision;
Rent Vs Buy Calculator
Personal preferences and long-term goals play a vital role when deciding whether to buy or rent a home. In your 20s, you probably do not have enough experience indulging in expensive business transactions such as home ownership.
If you are confused about buying or renting, you can use a Rent vs Buy Calculator to see which option will work out best for you. If you decide that you want to buy, then some companies such as Home & Money help you find licensed realtors to ensure that the process is smooth.
It is important to consult these professionals because they can provide you with the advice that you need before making the decision. They have been in the real estate business for many years and they understand all aspects of the industry.
Personal Finances
You also need to put your personal finances into consideration when deciding to buy or rent a house in your 20s. For instance, if you have a good credit score, you can take advantage of low mortgage rates.
You also need to look at how you file your tax returns. This is because your tax returns allow you to enjoy amazing tax benefits when buying and owning a home. This shows how your personal finances play a vital role when buying a home.
The most important things you need to look at, therefore, are your debts, taxes, and credit score. However, if you find that your personal finances are not well aligned, you are better off renting a home while at the same time streamlining your finances. This will make it easy for you to buy a house in the future.
Photo by Patrick Perkins on Unsplash
Your Lifestyle
Well, this is one thing that people, especially those in their 20s, fail to consider when deciding whether they are better off buying or renting a home. Deciding to buy or rent a house should also be dictated by the changes to the kind of life you currently have.
For instance, you are in your mid-20s and have decided to buy a house. However, you are not sure that the area you are buying the house is the same place you want to live for the rest of your life. What should you do?
It would be better for you to rent a home and avoid being stuck with a mortgage payment plan that might take over twenty years of your life. You also need to evaluate whether your lifestyle at your age allows you to save enough money for a mortgage payment. You do not want to lose your home even before it is fully yours.
Location
Location is a very important factor to consider when buying or renting a home in your 20s. For instance, if the city you are living in is expensive, then renting might be a better option for you at the moment.
Location plays a critical role for the first-time buyer. This is because it has a direct impact on property prices, whether buying or renting. Location here does not refer to things like historical cities or beachfront houses, but the geographical location of the house you want to rent or buy.
If you are in your 20s and cannot make a decision on whether you should rent or buy a home, first look at the location where you live. Check the property prices in that location and evaluate whether your income can sustain buying or renting. This way, you will make the right decision.
In conclusion, it is important to note that buying a home is one of the biggest investments you can ever make. However, make sure that you are making the right decision – renting might be better for you in your 20s.
Cover photo by deborah cortelazzi on Unsplash
