As of 2017, the average age of first-time buyers was 32 years old. While there is no right or wrong age to buy, the reasons to buy have shifted drastically for the younger generations. Here are what those in their 20s and 30s must consider before buying.
Are You Financially Prepared For Home Ownership?
One of the reasons many are waiting until they are a bit older to buy is because they want to be financially secure before taking on the responsibility that comes with homeownership. This often means paying off credit card debt and student loans and saving to put more than 20 percent down. Younger buyers are more aware of the hidden costs of buying a home and have a greater understanding that they should still have money in the bank after they purchase and furnish their home. This is also why many first time buyers are opting for condominiums or smaller homes that cost substantially less upfront.
What Are Your Reasons For Buying?
For many generations owning a home were an expectation, milestone, and an indication of your success. This left some families rushing to buy a home before they were financially prepared and often buying larger homes or homes in trendier areas out of peer pressure or the stigma that renting was some sort of failure. However, renting is no longer viewed in such a negative light. There is a steady rise in renters across every age group and demographic, including Baby Boomers selling their paid-in-full homes to enjoy the flexibility that comes with renting. So you must make sure you are buying because you are ready, not because of expectation or peer pressure.
What Are Your Long-Term Plans?
For buying to be a sound investment you must consider your long-term plans. Are you in a career or working within a company you want to be with long-term? Are you living in a city you want to live in permanently? Is your family still growing? These are questions our parent’s generation could answer in their 20s, but now is a question most don’t have an answer to until their 30s or 40s.
Renting To Reside Isn’t The Only Option
Not all first-time buyers purchase property with the intention of living in their home, but to rent it out instead. Investment properties of every kind are on the rise, including commercial real estate investments.
The resounding theme is that you should rent until you are personally and financially ready to buy. This will reduce your financial risk and ensure you aren’t tied down by the obligation of your home that you aren’t quite ready for.
Ready To Buy Your First NoVA Home?
If you are ready to buy your first or next home the team at Jerry Sardone Realty is here to assist. With over 50 years serving the NoVA community we have the insider knowledge to ensure you find the home, neighborhood and school district that is the right fit for you. Reach out today to get started.