5 Benefits of Buying a House While You're Young
We see conflicting headlines everywhere - Millennials aren't buying homes. Millennials are buying homes en masse. Well, which one is it? Honestly, we don't care. We DO care about telling you why you SHOULD buy a home while you're young. Yes, even though it's scary.
#1: Is there anyone here who doesn't want to make money?
Yes, renting has its perks. When something breaks, you just call up management or the landlord and they come fix it. But at the end of your lease, you don't get any of that money back. Well, except for your security deposit if you're lucky. When you purchase a home, you're making monthly payments, but then when you sell, you get that money back! Plus more hopefully!
Another scenario to consider... if you're single or a young couple and you don't mind sharing some of your space with friends, you may want to consider renting out some of your bedrooms. In most cases, your mortgage will be significantly less than the cost of rent and it’s possible that your friend’s rent would cover the entire cost of the mortgage and then some! In this scenario, you would either be making money or at least breaking even.
#2: Just because it's not your dream home doesn't mean it doesn't hold a great future for you.
The very first home you ever buy MIGHT not be your dream home - and that’s okay. Chances are you will live there for a while and eventually rent it out. This gives you the opportunity to have someone else pay your mortgage and over time, earn passive rental income.
So, even if you're unsure of where you're going to ultimately end up, buying a home is a great investment because if you decide to up and leave on a grand adventure, you can always rent it out! Just make sure you're planning ahead and stashing some cash away for any unexpected repairs you might have to make in the future as a landlord. #Adulting.
#3: Sit back and just keep watching your home value rise.
It’s pretty much a given that most homes across the country not only hold their value but also increase steadily over time. One of the benefits of buying young is that you lock in the current price of your home and then watch its value rise over the years. Home values in the United States have gone up 8% in the past year alone and are predicted to keep increasing. Sure, there might be some waves over the years, but by the time you’re ready to sell or retire, your home could be worth A LOT more than you paid for it if you bought while you were young.
#4: Finally, a place you can really settle in and call your own!
After years of living in dorm rooms and apartments where you were living out of plastic tubs and were hanging everything up with Command strips, now you'll have a place with a ton more storage and the option to decorate however you want! And how many of you never bought a bed frame simply because you didn't want to have to move it 100 times? Well, congratulations! Now you can buy a bed frame. It's a great feeling knowing you won't have to move for a while if you don't want to.
#5: Take your first step onto the stairway of wealth.
Let’s face it. You will need to live SOMEWHERE for the rest of your life. So it’s a good idea to start building equity young so that you can own your home free and clear someday as you prepare for retirement. You could easily spend half a million dollars or more renting for the next 30 years of your life and have nothing to show for it. Subsequently, it’s no surprise that 8 out of every 10 millionaires own real estate and that renters ultimately make landlords rich. If you have a stable income and want to make the best investment possible for your future, buying a home is a no-brainer in building wealth.
Now you may be stoked but also scared. Especially about where in the world you're going to come up with money for a down payment. Have no fear. There are all kinds of programs available and we can help guide you down the right path for you!
What does it look like to buy?
We've broken it down into a simple 8-step process. And the Jay Marks Real Estate Team is here to guide you through the whole process.
What's for sale in my area?
You can go ahead and search for homes in the area you're interested in to get an idea of what's available and what homes are listed for.