Is buying a home the best decision that you can make with your money in your 20s?
However, I wanted to look at the positive side of purchasing a piece of property after college. I’ve been open minded about discussing renting compared to buying a home in your 20s. It’s time to lean towards the ownership side of the argument.
What are the benefits of buying a home in your 20s?
You settle down.
Buying a place is great when you want to settle down. When you compare renting vs buying a home, you need to look at your situation in life. As a student or a young person that wants to explore, it always makes more sense to rent a place. As someone looking to settle down, the best move could be to buy your own home.
We all go on our own unique journey in our 20s. Some of us will want to explore the world. I personally took some time to travel the world for a bit. Others have no interest for this. I have many peers from school that just wanted to find a job and get married after college. That’s cool.
By buying your own home in your 20s you can settle down with your career and your location. You can focus on building a successful marriage or a family. You’ll have a stable place to call home.
Whether you want to settle down or not, the next point is an important one…
Buying a home is motivation for more.
One of my friends just moved into his new place a few weeks ago. He shared something interesting with me. We were chatting about random topics and he mentioned how he never really had any motivation to save money until he got the idea to buy a home. Now that he has a home he wants more. He finally sees tangible results for all of his hard work. He’s now motivated for more. What’s next? Perhaps a cottage or a rental property for him.
For many of us, buying a property will motivate us to work harder and demand more results in other areas. Once you have your own place you’re going to want more out of life in general.
Buying real estate can be a forced savings tool.
Don’t scrutinize me just yet because I’ve laughed at this point in the past myself. While I do understand that buying a home isn’t the best way to force yourself to save money. The problem is that personal finance isn’t a logical process. We all act on emotion. None of us are rational when it comes to spending money. You don’t believe me? Look around your room right now. Do you have brand name clothing? Do you have 4 video game systems sitting on the floor? What I’m getting at is we all need motivation and incentives to save money. Buying a home can be that incentive for you. Buying my condo at a young age forced me to work harder and save more money. Otherwise I wouldn’t have taken my finances seriously or even started this personal finance blog.
The other aspect of saving money with a home comes down to getting prepared to apply for a mortgage. This is going to force you to save up money, increase your income, and ensure that your credit score is where you want it to be. Sometimes all we need is a goal and a reason to save money.
At the end of the day, real estate isn’t the best investment. Buying a property also isn’t the worst investment either. The thing is that real estate comes down to your unique situation financially and emotionally. There’s no one-size-fits-all sort of answer here. What you decide to do should be based on your situation and your goals.
Will you benefit from buying a home? You tell me…