Navigate your way to any online lending or real estate source, and you’ll no doubt be inundated with articles about how young people are completely stressed out about buying a home. Heck, we wrote one back in June.
The problem with simply throwing out statistics regarding today’s youth — and their hesitancy toward jumping into the market — is that it does very little to actually help or guide this group of extremely capable buyers. So let’s take a look at what is truly important to consider when purchasing property in your 20’s.
Look past the negativity surrounding the current state of the housing market and today’s student debt levels. The truth is, according to a recent study, four out of five members of Generations Y (born between 1984 and 1995) and Z (1995 – 2015) are certain they want to be homeowners. Additionally, members of Gen Z are twice as likely to be saving or plan on saving for a home by age 25.
Generations Y and Z often come out of the gate with more earning power than their societal predecessors, along with a more evolved sense of financial savvy. They know they need to build credit and save for a down payment. But what else must they consider to ensure that their dreams of homeownership become reality before they turn 30?
Consider Your Career: How established are you in your current job — is it your career, or a stepping stone toward something greater? Is your role likely to change in the near future, through advancement, relocation, or otherwise? You want to make certain that if you do buy, you will be able to stay in the home long enough to recoup your transaction costs, and build some equity before selling.
Consider Your Lifestyle: Do you currently live in the city, state, and country where you want to live? Do you have access to all of the amenities you need to enrich your personal life? Do you want a white picket fence in the suburbs, or a condo just blocks from a bustling downtown? Remember, you’re not just buying four walls and a roof — you’re securing a community of your own. Make certain it’s the right one for your way of life.
Consider Your Future: Looking to tie the knot within the next 3-5 years? Hear the pitter patter of little feet coming around the corner? Maybe you just need space for the three puppies you’ve been waiting to adopt. The point is, right now this decision may seem all about you, but life changes pretty quickly. Take all possibilities into consideration, and make sure that whatever you buy, wherever you buy, the property remains suitable for everyone in your life.
Every individual, no matter their age, faces the prospect of homeownership with different backgrounds and personal circumstances. They key is to surround yourself with the right people, who can help you make the best decision for YOU. First, find yourself a home financing expert. Then, align yourself with a real estate agent who truly cares about you and your future. Only then can you feel fully comfortable taking this very big, but very manageable step toward stability and security.