8 Reasons You Should Buy A Home Earlier In Life
If you’re in youthful age, (20-28 something) , and have been taking all the personal finance counsel from the most popular columnists and relatives from quite some time about how owning a house at young age isn’t the best of the financial move, I’m afraid I am here to state otherwise.
The idea is certainly your mind’s best proposal, an unmistakably smart decision financially or otherwise and here is why: (Hint: It’s all in the figures).
- Sky High House Prices: Irrespective of when you gear yourself up to buy a property, the prices will always seem too high. But the sooner you begin the higher shall be the returns, alongside it being a good investment.Nowadays, we strive for instant gratification and focus on small goals; we no longer consider the big picture for our future. Buying a house young helps you overcome this problem of short-term thinking.
- Compare the Lifetime Costs of Renting V/s Owning: It is required to do some legwork once you decide on buying a house. Calculate the overall cost of Owning by pooling in all the costs of Down payment+ Load Repayment + Property Taxes + Others.Now calculate how much rental payments you would have to pay for living under the same roof. The monthly expense might be less but if you multiply it by the number of months of all your life, you shall realize that it rounds about close to the former figure.What’s the smarter move, you ask? That the bold step of handing down the down payment amount in the first go and let the same rental payments build by equity!
- Popular Myth! :Young people feel have a lot of aspirations that buying a house will tie them down with loads of responsibilities at a young age, limiting their choices of lifestyle.For instance, not wanting to be tied down to mortgages because you want to travel like a free bird!Well, Buying a house young doesn’t mean you have signed a contract to lead a miserable life under huge mortgage payments. You can always choose to rent your own place, shift the cost of mortgage to your tenant while you’re away. After all that’s what you are doing for your landlord right now.
- Play it smart! : You can also, open up your place for your friends, and continue to live the life with roommates. There’s independence, stability, a movie like daily life and your friends to share the burden. Sharing the rent was smart but sharing the mortgage is smarter!
- Always Take the Practical Reasoning. : Owning a property comes with the burden of property taxes, maintenance costs, interests etc. You get intimidated by so many sub-head costs, but in truth you are already paying for each of it through your rental payments. The only difference is currently all the sub heads are sugar coated into one humble figure by your landlord.
- Money Builds Money : In your debut investment on a house, you can buy as per your need and capability. The place however appreciates its value with each passing year, increasing your ability to invest on the next one better. Money you attain years later by selling off your first property enables you to buy a better one later.
- Lesser Priorities : Younger age comes with lesser responsibilities, the more you grow the more duties you are entangled into. The relationships extend, the families expand and the duties evolve. It’s better to secure something for yourself before you start worrying about saving up for your kid’s college bills.
- No Delay : You are smart to realize that real estate sector prices appreciate and almost never see the reverse trend. The cost of a property is always bound to rise, it’s better to sign up for it now than wait and get the same house at double cost.