What Is The Right Age For Buying Your First Home?
Most people dream of buying a home – a place they can call their own and decorate as their heart desires. However, considering this is one of the most important financial decisions in a person’s life, you must time it just right.
Still, the right time to buy your first home differs for each person. Everyone has different factors they need to consider, such as their current job situation, plans for the future, available funds, and more.
So, the best time to buy your first home is whenever you feel ready to take the plunge. But if you’re already thinking about it and are still on the fence, here are a few factors to consider:
When Does Everyone Else Buy a House?
While you shouldn’t make decisions based on what everyone else is doing, it still helps to know when everyone else is ready to take the plunge.
According to recent reports, most people will become first-time homeowners at around 33 years old. Furthermore, the majority of first-time homebuyers are married couples (around 60%), and only about 9% are couples who are not married.
If we look at another analysis by The Pew Research Center, this age makes sense since young adults move at a later age from their parents’ home. In fact, quite a large number of young adults will continue living with their parents or an older relative until later in life.
Are You Ready to Support a Mortgage?
One of the reasons so many people wait until their 30s to become homeowners for the first time, is their financial situation. This is the average age when most people have a stable income, a good credit score, and have saved enough for a downpayment.
So, what’s your current situation? Are you prepared to get a home loan?
As property prices are on the rise, most people need to get a mortgage to acquire a new home. But before you can get a loan, you must have the downpayment and meet all the conditions required by the lender. Plus, besides the mortgage costs, you also have to consider extra expenses such as insurance, maintenance, repairs, and so on.
Family vs. Career
As we already mentioned, the large majority of couples who buy a home are married and plan on raising a family. If you are in a similar situation and your financial situation is stable, then you’re probably at the right age to buy a home. It’s also the right time if you’re newlywed and planning on enlarging the family soon.
On the other hand, if you’re single and focused on your career, you may want to wait a little longer. This is especially true if you think you may have to relocate in the next three to five years. That’s because the best way to recuperate your initial expenses after buying a house is to live in it for the first three to five years.
So, if you’re not sure about you staying put for the following five years, it’s best to wait and sort things through with your career.
When Should You Buy a House?
The short answer is whenever you are ready. However, things in life are rarely this simple, and you must consider the factors that matter to you.
If you think you’re ready to own a house in your 20s, then you’re already one huge step in front of everyone else your age who will most likely go on to pay rent for the following decade. Buying a house at a young age is a great investment in your future that often comes with a few tax benefits.
On the other hand, if you’re in your late 30s and still don’t feel ready, you’re not alone. More people postpone this moment until later in life to make sure they make the right step. So don’t rush just because everyone else is buying houses – take your time to decide.