I sometimes hear young people putting off buying a house until marriage or until they believe that they are ‘ready to settle down.’ Here’s why that may be one of the most costly mistakes that you can make.
One of the biggest mistakes many young people make is putting off buying a house because they are not married or they don’t believe they are ready to settle down. I’ve heard people say that if they wait until they are more established in their careers or are ready to start a family they’ll be better prepared for homeownership.
I can’t stress enough how costly that line of thinking can be. The benefits of buying a home before you turn 35 are tremendous. In fact, the Urban Institute recently conducted a study that shows several reasons why buying a house at a younger age is a better deal.
You’ll likely have greater wealth. Homeownership creates financial security. Those who have worked with HomeFree-USA to buy their first homes have told us time and time again how their lives have become more stable after homeownership. According to the Urban Institute study, people who bought their first house before they turned 35 had greater housing wealth in their 60s than people who didn’t. In fact, those who bought a house before the age of 35 had more than $100,000 more in housing wealth than those who waited until they turned 45. Imagine what you can do with that extra $100,000.
You’re more likely to one day have that dream home. I’ve heard people put off buying a house because they can’t afford the house of their dreams. Don’t make that mistake. Think of each house you buy as a stepping stone to greater wealth. By the time you’re in your 50s and 60s that dream mansion may indeed be a reality. In fact, the Urban Institute study found that those who purchased their first homes at an earlier age were more likely to be able to afford more expensive homes in their sixties than those who didn’t.
You’ll likely have a better retirement. Many people dream about living a life of leisure and travel when they retire. But if you’re saddled with debt, you’ll be working longer and harder to pay it off. The Urban Institute found that those who bought houses before the age of 35 were less likely to have as many mortgage debts by the time they reached their 60s. That means you’d have money for other things that you wanted to do.
When it comes to buying a house, think big picture. Those who are under the age of 35 are in the perfect position to build greater wealth and financial security. Don’t delay. Contact HomeFree-USA to find out how you can take the first step to building more wealth through homeownership no matter what age you are.