Buying a home in your 20s can help you prepare for more financial security in the future. You can start paying off your mortgage loan and accumulating equity (how much of the house you own directly) when you're young, which helps you build up wealth. Often, a home can be seen as a long-term investment. But if there are short-term situations that could affect owning that home, such as going back to school or eventually getting married, it might not make sense.
Make a plan before you buy so you can move when you need to. Buying a home can be a big investment, but it's probably the most important purchase of your life. So, consider if you can afford it and what type of housing you want, such as a starter home or a condo. Also, consider life events, such as if you are going to start a family.
Life at 20 and Beyond. A Medium publication focused on work, independent work, money and life advice. With those things in mind, any age starting in your 20s could be a realistic age to buy a home. If your local housing market is particularly expensive or competitive, you'll need to move quickly when a home you like appears on the list.
I remember my first phone call with a potential real estate agent to talk about what I planned to look for in a house. If there is a possibility that you may move because of a job change or marriage in your 20s, consider how easily and quickly you could resell the house, if necessary. When you plan to buy a home at 20, you'll need to know how much money you need for a down payment. If your goals, the local market, and your finances align, then it might be time to buy your first home.
Before you can go ahead with buying a home in your 20s, you'll need to review your finances thoroughly, especially if you're buying on your own. But is now really the right time to enter the housing market? Can you afford to buy a house? When is the Right Time to Buy a Home? At any age, buying a home will be easier when you have a reliable income, some money saved, and an established credit history. You may be eligible to buy a home at age 20 if you have a sufficient credit score, stable income, and enough savings to cover your down payment and closing costs.