So you’re in your 20s and you want to buy your first home. Contrary to what some believe, millennials are completely capable of purchasing homes by following a few key steps. So if you’re a 20-something looking to buy a home before you turn 30, simply follow these tips.
The first thing you need to do is understand your finances. What are you making now and what do you think you’ll make in the next 24 months? Look at those numbers to find out when the right time is for you to buy. Many people think that you need to save a lot of money to buy a house, but this isn’t entirely true. There are plenty of options to buy homes for as little as 5%, 3%, 1% or even 0% down, and we would love to help you understand those options.
The next thing to do is meet with a lender. Too many people have no idea that they qualify for a home and have been paying rent because they don’t know any better. Actually sitting down at a meeting with a lender to discuss your options is a huge benefit because then you know exactly what you qualify for. If you don’t like the amount, you can also set up a goal with the lender to achieve so you can buy something later.
Have a great real estate agent. Many 20-somethings looking to buy are going to be buying in price points that are heavily impacted in today’s market. If you think it’s a good deal, chances are other people do as well. To counter that, you have to work with an agent who understands how to quickly analyze a deal to see if it’s worth taking the next step or if it’s a big waste of time.
With these tips in mind, we also want to give you a few ideas on how to think about owning a home in your 20s:
Think of it as an investment property. It’s perfectly fine to own a home for yourself, but a lot of people also look at it from an investment perspective where you buy a property to help you accumulate wealth in your 20s for a family home later. Basically, you want to find a property to rent out where the rent can provide you with income in the near and long-term future.
Try house hacking. This means that you’re buying a property with multiple units where you live in one and then rent out the others, which can help subsidize housing costs. Some young people are even able to profit by purchasing a multiple unit home.
Live with family or friends. As long as you have a written agreement with an exit clause that makes sense for both of you, you can partner with family and friends. I’ve even seen people ask for money to buy a property to start their real estate portfolio and by their mid-30s, they have built a lot of wealth.
If you have any questions about buying in your 20s, please feel free to reach out to me. I would be happy to speak with you about building your wealth for your future.