“Buy a home in my twenties? Who, me?” If this is you, we get it. The thought of buying a home often seems like something that older people do. The truth is, however, there are plenty of perks to being a young homeowner. And if you’ve got the financial means, what are you waiting for? It might seem daunting but just imagine no longer having to deal with a landlord while having control over your home renovations. Sounds nice, doesn’t it? Read on for other benefits of buying a home at a young age.
It Helps You to Build Credit
Credit history will be important all your life, and establishing good credit early on will be impressive to future lenders. While your car loan and credit card(s) help, paying your mortgage consistently and promptly will help your credit score to rise and at a significant rate to boot. This will be crucial if and when you want to plant family roots later on by buying a bigger home.
You’ll Reap Many Tax Benefits
This should never be underestimated, as the tax benefits that you reap when you buy a house are significant. A recent article by The Financial Diet notes, “Homeowners get tax credits you can use to lower your tax liability. This means you owe the federal government less money each year during tax time, and you are more likely to receive a tax refund than you are if you don’t have the ability to itemize your deductions for a higher rate of return.” Talk about a win/win scenario.
It’s an Investment
Everyone knows that the housing market ebbs and flows but as long as you can commit it to the purchase for the long haul, buying a home is always a good investment. And if you make sure you eventually sell in a seller’s market, you’ll likely have a nice down payment for your next home. Paying rent is essentially throwing money out the window every month, as it’s not going towards anything by way of investing. As long as you don’t cut and run at the first sign of trouble in the real estate market, this investment will be well worth it.
Responsibility Begets Better Saving Habits
This doesn’t mean you have to quash any chance at fun times and vacations and such, but it will teach you to buckle down and avoid any unnecessary spending. When you know that you have your mortgage payment each month, you’re more likely to be cognizant of your budget and savvy about your spending.
So Long, Roommates
This is less of a financial benefit and more of a sanity saver, as we’ve all had bad roommate experiences. There’s nothing worse than having someone who’s messy, doesn’t pay the rent on time, is generally irresponsible, or all of the above. If you buy within your price range, your home can be your own. It’s hard to put a number on that kind of freedom.
You’re Free to Decorate and Make Other Home Improvements
This is a particularly big benefit for those who love nothing more than a good DIY project. Your own home affords you the opportunity to put your own mark on it, both inside and out. Of course, if you are part of a homeowners association (HOA), you have to stick to their guidelines, but you’ll still be able to have your home reflect your own personal style. When you’re renting, you can’t even paint unless you agree to put it back to its original color when you move out. And if your landlord was anything but an environmentalist, owning a home will help you take more control over making it as green as possible.
It Helps With Retirement
The younger you are, the longer the home tenure you’ll receive. This means lesser equated monthly installments (EMIs), freeing up more income for spending. If you pay off your home loan EMIs prior to retiring, you can sit back, relax, and enjoy the retirement you deserve. It’s never too early to think about that.
If you’re waiting to buy a home simply because you think you’re not old enough, you’re missing out on all of these benefits. Weigh the risks, assess the market, and if you see fit, pull the trigger … even if you’re in your twenties.