Young People Are Clueless About Real Estate

I’ve noticed over the years that young people are pretty clueless about real estate.

We just assume that the best investment is real estate. We believe that you need to buy a place after college. Nobody ever really challenges this. Our parents tell us that we have to go to college after high school because it’s the “smart” thing to do. We go to college because we don’t want to to disappoint our parents. Then the next logical thing to do is to find a good job. Once you find a good job, it’s time to find a partner and/or buy a home. Why? Because it’s what we have to do. It’s what we’re supposed to do.

Young people are clueless about real estate.

Why do you have to buy real estate in your 20s?

I always assumed that it just made sense to buy a place in your 20s. Just like you I never really challenged this piece of conventional wisdom. It’s just what we’re told to do.

Why buy a place first? Why not rent and get to know the area? You’re not “throwing money away” by paying for rent. You’re paying for a roof over your head. You have the freedom to get up and leave when your lease expires. You don’t have to worry about putting the place on the market.

While it feels great to boast to your friends about your new home purchase, the truth is that your new home will change your lifestyle forever. You’re now committed to making those monthly payments. You have to pay your mortgage. If you stop paying your mortgage, you’ll lose your home and your credit will be in the toilet. It’ll take you a long time to improve your credit score after this.

This means that you can’t start an online business or pick up to travel because of your new home-owner lifestyle. Do you want to restrict yourself like that?

What are other options in your 20s?

I recently wrote about your living situation after college and I highlighted the many options. There are plenty of options for your housing in your 20s. You can’t just assume that you have to buy a property. You need to weigh the other options. Perhaps you could rent a place out while you work on your entrepreneurial projects? You might want to to travel in the near future? You might just not be ready to buy a place yet.

Now don’t get me wrong, the young professional couple with a beefed up savings account looking to settle down might be ready to buy a place. You do what feels right for your unique situation. Don’t let any “expert” tell you what to do.

Are you clueless when it comes to real estate?

If you are then just leave a comment below. I’l try to answer it as best as I can. I’m here for you after all. If I can’t answer it, I can always delete the question (kidding!).

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