If you pick up a newspaper today, you’ll probably read about how more and more Millennials are staying at home with their parents longer. The reason for this phenomenon is simple: Millennials value their freedom too much and fear commitment. Well, that couldn’t be farther from the truth. Yes, Millennials do put freedom and exploration high on their lists, but they are not afraid of commitment. Young people are interested in settling down, however, this question keeps popping up: what’s the advantage if I buy a home while I’m so young? Well, there are three reasons to buy a home while in your 20’s!
Save Money On Other Debts In The Long Run
This may seem confusing to you, but buying a house in your 20’s will actually save you money. If you graduate from college when you’re 22 or 23, odds are you’re going to have some school loans and other debts. Eventually, you’ll get a job and start making those payments. Your next objective should be saving up to buy a house, even if you haven’t made any long term plans to get married or start a family.
Why Buy A Home When You Are Young? Here’s Why!
When you buy your home, you’ll start accumulating equity. Overtime, the equity in your home will be enough to give you some really good options…one of these options can involve getting ahead on your student loan. By refinancing your home, when the time is right of course, you can use the money to pay off your student loan. Rolling your debt payments into one low rate payment saves you money in the long run.
Be The Richest Kid In Your Group Of Friends
Home Ownership Is An Advantage
If you drive down the street of any neighborhood these days, you’ll notice a variety of different type of homeowners. But you won’t see a ton of young, single people buying up houses. There’s this misconception young people have that homeownership is something to do when you start a family. Again, that’s not true! Buying a home sooner rather than later gives you an incredible advantage.
As mentioned before, many Millennials don’t own houses. If you’re the only one of your friends who own a home, you’ve just become their dream come true. Having your friends move in and pay rent towards your mortgage helps you save money. While they’re enjoying the luxury of living in a house without parents, you’ll be racking in the dough to finance your goal of keeping that freedom you love so much.
Build Your Credit The Right Way
After college, you’ll probably want to get credit cards to start building a good credit history. No! Don’t fall for this trap! Credit cards hurt your credit more than they help. Using revolving debt, with high interest rates, will drag down your score, even if you are making payments to clearing out your balance at the end of the month. But if you get a mortgage, you’ll build your credit and save money.
You see, a mortgage, just like a student loan, is a debt you can leverage on your taxes. And, your mortgage payments offer lower interest rates, which means that more of your payment is actually going towards principal verses fees and interest that credit card companies charge. And, just like before, you can always refinance your house at a better rate to save you more money.
Still not convinced? I could go on and on about the benefits of buying a home in your 20’s. But I’ll save that chat for when you give me a call.
So, connect with me via call or text and let’s get you on the path of homeownership! Oh, and don’t forget to check out my Friday show “Lunch With Mark” on Facebook, hosted by Codemark Financial. Until next time!