When people think of buying a house, they often think that it is only possible after a long time of saving money. This results in many people buying their first home in their 30s. But if you are a young professional, you have a good chance of being able to buy a house in your 20s. Here is a quick guide on how you can start owning property that early.
Calculate Your Buying Power
Many people prefer to pay for houses in full. That approach eliminates the many worries about ownership but it is very limiting. If you plan on buying a house, you should sit down and calculate how much you can afford. Your savings might not be enough to pay for an entire house purchase, but it can be enough for a down payment for a home loan. The loan will need to have payment rates that you can afford but it is doable.
Don’t Overlook Perfectly Good Home
The big mistake that many homebuyers make is that they buy houses that have all the features. This results in high prices. But, as a young person, you don’t need a big home. It is a good idea to settle for a starter home that has the basics that you need: a bathroom, a bedroom, and an additional room or two.
You can also look around for budget homes. These places are usually fixer-uppers that need some repairs but spending sweat instead of money is a good deal for you. What is great about this is that your home is still accumulating equity and your improvements can add value. In a few years, you can choose to sell and use the money to buy a better home.
Get Some Help
There are no rules that say that you have to buy alone. If you have a roommate, then you can pool your money to buy a house. Sign a contract with them that you jointly own the property and that, during its sale in the future, they will get a fair share of the proceeds. This can allow you to buy a better home than you normally could.
Consider Condominiums or Townhomes
Many people look down condominiums and townhomes because they are not full houses. But they are more affordable and come with options that a normal house may not have. If you live in Daybreak, Utah, for example, there are townhomes for sale in the area. These are available at varying prices. They are perfect for singles who do not have to worry about families.
In addition, many of these developments are in prime locations so you can benefit from being close to the essentials like groceries, hospitals, and more. Look over the listings that are in your price range to see what is available in the neighborhood that you want.
Owning a house is a major achievement. As a young person, the first house you own is a place you will remember forever. This is because of all the effort that you put into buying it. When you get those keys and walk into your new place, you should take a moment to be proud of yourself.