Forget all the reasons why you would answer “no” to this question immediately. We understand that in your 20’s you come recently graduated from university. Perhaps with a loan to pay for a car or studies, you have an entry level salary and a raise is not seen in the near future … In spite of everything you would be surprised to know that millennials are currently one of the largest groups of real estate buyers in America. And most do it alone, not with partners or family! But is this a good decision for you? Is your personal economy ready?
Benefits of Buying a House in Your 20’s
Owning a home is not only a great responsibility, it is also a great benefit. In your 20’s, a house would be a long-term investment. That can later be converted into an airbnb, a rental home, you can re-sell it. And if you decide to keep it later, it can be something that can generate income when you retire. Other benefits can be …
- No More Monthly Payments for Someone Else – This means that your money is not going to someone else. Rather, the 2 million colones or more that you could pay in rent annually is now going to something that is yours.
- Power of Decorating – Now that you are the owner: you don’t have to go around asking permission to hang a painting on the wall. You can personalize your home however you like!
- Credit Score – If you want to start building a good credit history, you must be very responsible with your loan (and card) payments. So that you build a good credit score and use this purchase to your benefit.
- Loan Payment Cheaper than Rent – This will depend on the area you decide to live in and the amount of money you ask for in your loan. The monthly loan payment may be lower than what you are paying for rent!
Before buying a house in your 20’s, you should consider all the factors that can determine whether making this decision will be the best for you.
¿What Should I Consider Before?
- Your Career: If your job demands that you are moving from city to city. Or even your job stability is not enough for you to make this long-term decision, then you may need to reconsider. But if you find yourself in a good job, with a good long future in the same place then it would be more advisable.
- Your Income: Depending on how much money you are making after removing all necessary expenses, payments, deductions, and taxes, you can make the decision to buy a home. We recommend using a mortgage calculator. So that you can know at least how much your monthly payment would be, or check with the bank directly.
- Interest Rates: Of the first things you will need to find out are current interest rates, and when they will go down if they are too high. We also remind you that it is best to look in different places how much interest they charge you so that you can compare which one works out the best.
- Local Market: If you do not know what type of market you want to buy in, if it is a buyers or sellers market, or if you do not even know what these types are, we advise you to use a real estate advisor who can help you. Since not knowing about these things, and more details of the local market can affect the decision to buy a house in your 20’s and how beneficial it is.
There is no perfect or inappropriate age to buy a home, there are only perfect conditions. These are mostly created by you, the others are part of the market. But if you decide to save and invest wisely in your future, then buying a home in your 20’s will be a good option to live happily and invest wisely!
