So you have graduated college, you may have turned pro or just the average joe. You may have heard of people saying, “there is no right age to buy a home”. Although they are not completely wrong, you must evaluate your situations in life while deciding whether or not to buy a home, or when you should invest in a house.
Home investment is a serious and the most significant investment in an individual’s life. For a long time, you picture your dream house. However, when the time comes to make a decision, you may get confused or scared, and it’s absolutely normal. Buying a home hurts you financially and affects your life.
So, what is the right time to buy your own home?
The safest answer is: When you can comfortably afford monthly payments. Apart from that, there are plenty of other things to consider, such as your age.
At What Age Do Most People Buy Their Home
Although buying a home is a personal decision, and you should take it when you are ready, it might be helpful to understand when other people invest in a home. A solid reason to track other buyers is ‘homeownership rates’, which increases with age.
As per a 2020 report by the US Census Bureau, Homeownership Rate by age was:
|65 and >||80.2 Percent|
Another report by the National Association of Realtors states that the median first-time homebuyer was 32-year-old in 2017. Here, it is important to note that the average median income of the buyers was at $75,000.
Why Buy Your Home Young
When it comes to the best way to invest in your home, it is wise to buy young. It is because:
- Equity in Property
Buying a house is a way of increasing your net worth. You make your mind for savings for monthly payments, which helps build equity in the property, which can be used later for other investments. You can save some amount of monthly payments to save money for future investments.
- Safe Investment
Considering the current situation of the real estate world, which is flourishing, buying a home can be called ‘a safe investment’. The property prices are soaring, and they aren’t expected to drop soon. In a strong market, investing in a home contributes to your wealth accumulation.
However, while deciding to buy your home, think of living in the house, instead of considering it an investment opportunity.
- Own Home
There is hardly anything more satisfying than having your own home. You don’t have to worry about landlords or shifting to different places for better facilities. Also, whenever you feel like making some changes to the house, you don’t need anyone’s permission.
In the End
Buying a home is a personal decision, and you can invest in a house whenever you are ready. However, investing young can be beneficial for your future. Good luck!