Buying A Home At A Younger Age Matters
Source: Jessica Kane
Photo Source: Photo by Daria Shevtsova from Pexels
Homeownership remains a dream for many, if not a majority, of Americans. Although the dream of homeownership can prove elusive for some people, a good many people make buying or building a home one of their primary objectives in life. Understanding these realities, there are some real benefits to focusing on buying a home at a younger age. Buying a home at a younger age really does matter for four key reasons.
1. More Moderate Monthly Mortgage Payments
By buying a home at a younger age, a person is in a better position to get a longer term on a home mortgage loan. A younger person will be heading into his or her professional most productive and profitable years. A younger person purchasing a home will be able to obtain a 30-year mortgage that can be paid off while he or she is still working.
Of course, a person can obtain a shorter term mortgage if he or she desires. The reality is that by buying a home at a younger age, an individual has more flexibility than might otherwise exist making this type of major investment later on in life.
2. More Favorable Market Prices
The housing market can be an unsure and volatile arena. With that said, the reality is that housing prices are likely to increase overall over time. Thus, another key reason why buying a home when a person is younger makes sense is because of the ability to get into a residence at a more favorable price than may be possible at a future point in time.
3. An Investment Resource For The Future
By purchasing a home at a younger age a person has the ability to build up equity in that property earlier on in life as well. Having a home with available equity can prove to be a valuable resource. For example, a person might desire to invest in something else during the course of a lifetime. By having a residence with available equity, an individual can take out a second mortgage or establish a line of credit that will make such an investment possible.
In addition, having a residence with built up equity can be a solid safety net as well. For example, if a person or family experiences some sort of emergency, a source of funds is available when a home has accrued equity.
4. Satisfy Mortgage Before Retirement
Retirement may seem like something very far off when a person is starting his or her career and planning to buy a home for the first time. While retirement very well may be many years down the road, planning for the proverbial Golden Years is something that is best started sooner rather than later.
When planning for retirement, people understandably focus on setting up a retirement account of some type and ideally begin putting away money for those Golden Years. Another focus needs to be on buying a home. One of the key reasons why buying a home earlier in life rather than later matters is you put yourself in a position to ensure that a home mortgage is paid off before retirement.
One of the most important investments a person can make in anticipation of retirement is fully paid off home. Many retirees face a period in their lives on fixed incomes and are still dealing with home mortgage payments.
By having a paid off home mortgage loan as a retiree a person has a significantly more manageable financial burden each month. Moreover, a person has a paid-up asset that can be sold if the need arises. In other words, a retiree can sell a paid-off residence and invest some, but not all, of the proceeds in a smaller home that better suits his or her retirement needs.
For most Americans, a home is the most significant investment made during the course of a lifetime. Starting the process of owning a home during the early years of a person's adult life provides not only the benefits outlined here but also the location at which memories will be made that will last a lifetime.