Today – Is There A Best Age to Buy A House?
If you’re considering buying a house, congratulations are in order. Buying a house is a great experience and you should invest in a house when it’s the right time. If you’re wondering about the right age to buy a home, the thing is there is no right or wrong age when you should buy a house. There is no set age by which you should buy a house.
Buying a house is an investment. You can always rent a house but buying a house offers many advantages, depending on circumstances. For most people, buying a house is the biggest investment they will ever make in their life and it’s a financial decision that can have immense consequences, good or bad. Therefore, you should carefully think before you decide to buy a house.
So, Is There A Best Age to Buy A House?
Most people buy a house when they are comfortable. As you might have guessed, the home ownership rate tends to increase with age. The home ownership rate is the highest in the age range of 65 and over but at the same time, the median age of first-time home buyers can be as low as 32 years. This does not mean that you should own a house before you reach the age of 32. Here is a list of some of the important things that should help you in deciding whether it’s right time for you to buy a house.
First and foremost, you will need to make a down payment to buy a house. Before you can make a down payment, you will need to get approved for mortgage, and before you get approved for mortgage, you will need to hold a steady job. The amount of mortgage you can get approved for will depend on your salary as your monthly payments can only be up to a certain percentage of your monthly salary. Home ownership also comes with a lot of other recurring expenses and you also need to take those expenses into account.
Buying a home doesn’t come cheap as you will need to spend a significant amount of money on the transaction costs. Investing in a house does not always turn out to be a great investment as sometimes, prices keep declining for a few years. However, prices usually recover in the long run which means you typically won’t face a loss on your investment but there is no guarantee of profit.
House ownership isn’t easy. You need to be mentally prepared for the responsibility of maintaining that home. You will need to spend money on repairs, enhancements and on other things in order to make your house worth living. Simply put, the right age for buying a house is when you feel comfortable.
Your focus should be on building a nest egg first. Once you have an emergency fund ready and there are enough savings, and you have money saved for a down payment, and you can get approved for a mortgage, that is the right time for you to buy a house. If you do have money and there is a property you like, you should buy it whether you are below 30 years of age or above 40 years of age or of any other age.
Buying early means you will build wealth as property usually appreciates in value over a period of time. You will also save money on rent. Also, owning a house means you with have a place you can call your own. You are free to customize it, change its layout and appearance or make any kind of improvements. You do not need to get permission from your landlord to do any of the thing you want to do to your house. Owning a house also brings a lot of happiness and fulfilment.
One of the biggest mistakes made by first-time home buyers is that they end up buying too much house. It simply means that they buy a property that is not within their means. Living big should not mean living uncomfortably. Consider your finances and only buy a house you can comfortably own and maintain. Always be prepared for any emergencies.
Owning a house doesn’t come cheap and you will need to continuously invest in the house in order to keep it livable. Therefore, the first thing you need to do when you are considering buying a house is to take a close look at your finances and fix a budget. It will allow you to search for properties that fit within your budget. Do not let your emotions get the better of you. You will always find a house that you absolutely love but cannot afford. Don’t try to stretch your budget to buy a bigger house than you can afford.
Overall, there is no right or wrong age to buy a house. You should buy a house when you are financially comfortable and can afford the down payment and the monthly payments and have an emergency fund to tide over any emergencies.
Is There A Best Age to Buy A House? is a feature post