What’s the true mark of success? A growing business, maybe? A luxurious car? Many things are often associated with prosperity, but a house remains the top indicator of life’s crowning moment. From comfort, privacy, to security, tons of things make home a priority to many.
Sure, while the costs of houses remain skyrocketing, the demand for a home remains irrefutable. This was further highlighted during the COVID-19 outbreak, where people are forced to stay indoors. Unsurprisingly, this pushed many younger generations to secure a home despite financial worries. In 2020 alone, the millennial homeownership rate surged to 47.9%. This sharp increase in homeownership is even more apparent among the ages 25 to 34 years old.
But how exactly can one buy a house in his 20s? Is there a way to snatch a dreamy home at such a young age? If you’re part of the curious crowd, then here are the top ways that can help you secure your dream house earlier than planned. Check them out below!
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How to buy a house in your 20s
Option 1: Get a mortgage
A mortgage loan is the first thing that often comes to mind when one wants to buy a home but has no cash on hand. Likewise, it is also a good option for people in their 20s who are yet to grow their savings but immediately want a house.
A mortgage refers to a type of loan that lets you borrow money to finance a home purchase. When you get a mortgage, a lender will give you the money you need to buy a home. In return, you’ll pay the money you borrowed every month with interest.
Since interest rates associated with mortgage loans are generally lower than other forms of loans, this makes mortgages a top financing choice for people who are just starting with their career in life. On top of that, mortgages often come with longer loan terms, with some offers extending up to 30 years. This gives more time for borrowers to repay their debts and manage their finances with more freedom.
You can easily find a good mortgage loan program online. Often, loan companies already provide the necessary details on their sites regarding their mortgage offers. Intermediaries such as mortgage brokers are also there to lend you a hand. They are in contact with various lenders and can lead you to the best mortgage program that suits your needs.
Option 2: Settle for an old house
While it’s tempting to go straight for a brand-new home, buying an old house can sometimes provide more benefits. Specifically, older homes promise lower costs and even lower property taxes. These features make them fit for young home-hunters who can’t afford to buy newly-constructed buildings.
Sure, there are probably fixtures that demand immediate renovation and replacement. On first look, this will leave you with more chores to do right after you move in. But, on the brighter side, this also gives you the chance to revamp the place into your ideal home with fewer expenses to worry about.
Moreover, basic home essentials are already likely to be there, such as toilet fixtures and built-in cabinets. Just make sure to conduct a complete inspection before you close the deal. You can also seek the help of a professional home inspector to assess the value and current state of the house.
Option 3: Embrace minimalism
Minimalist homes aren’t just art expressions; they are also a possible refuge for home-hunters on a tight budget. Since minimalism is characterized by extreme simplicity, it is also often seen as a lifestyle choice that promises better spending habits. For home buyers, this means less financial worries and more freedom to move around with the help of innovative design.
Specifically, their simplicity and efficiency make minimalist houses the perfect space for young adults who follow tight day-to-day schedules. With fewer fixtures and decorations around, one can move freely while in a rush. Plus, the lack of unnecessary materials lying around the house makes household chores easier.
To date, the average cost of a tiny house can be from $8,000 to $150,000. Depending on your budget, you can easily snatch a small house and transform it into a fresh, minimalist home. Since minimalism is characterized by a monochromatic color palette, you can easily color the structure in neutral shades and welcome visitors right away.
Excited to move into your new home? You can never be too young to secure a house to stay in. Grab your dream house with the help of these smart home-buying tricks.