Why buying a home in your 20s is totally worth it
Maybe you’ve hit that age when your WhatsApp messages among your friends are all about housing prices, saving to buy a home, and what your dream home would be instead of memes (among the latest on who’s engaged and who’s popped out another kid!).
So what’s all the fuss and rush to own? There’s a benefit to buying early and we’re here to tell you how it can seriously pay off (literally) in the long run. We know saving for your future is hard to grasp when you want to splash the cash now after you got the pay raise you worked so hard for.
But trust us, your future self will thank your past self.
1. More time = bigger and faster gains
By getting on the property ladder sooner rather than later means you have more time to pay off your mortgage. Buying early with the intention of gaining a profit when you sell works in your favour when you have more time to let your property appreciate (fancy word for 📈) in value. Because you’re in your 20s, you’ll have the option to select a longer mortgage term than most to access more affordable monthly payments.
2. Make your money work for your future self
Picture yourself 5, 10, 15 years from now. What kind of lifestyle do you want to have? What kind of home do you want to live in? If your main source of income comes from your salary, setting money aside to invest earlier can give you greater returns down the line and help you afford the lifestyle you want to have. You could potentially turn your home into an income-earning rental property when you’re ready to ‘move up the ladder’ to a bigger home. Sounds sweet right? Investing your money into a home in your 20s instead of paying off your landlord or spending all your cash is a way of saving for your future.
3. Steady monthly payments (no more surprise rental hikes from the landlord!)
When paying monthly rent, you always run the risk of rental payments increasing from your landlord. When you have a fixed-rate mortgage, you’ll know exactly how much you will be paying for the next few years (into your own pockets!) so you can better manage your expenses. When the next pay rise comes around, you can focus on investing or spending it elsewhere.
4. Your home on your terms
No more landlords to tell you that you can’t paint a wall or put up a shelf! Create and build the home you’ve always wanted without any restrictions. You also may be less likely to have commitments that restrict where you should live. For example factors like finding a neighbourhood that has good schools or a home with enough space for a growing family may not be a priority for you at an earlier stage in life. This means you have more freedom to buy smarter in an area that is up and coming and has a higher likelihood of providing profitable returns.
If you’ve reached the end of this post and you’re jazzed about how you can own a home soon, check out these other helpful articles on how to get started!
Tips on saving for a mortgage deposit
Mortgage rates explained
How much deposit do you need to buy your first home?
The only A-Z glossary of property jargon you need
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