When is the right time to think about buying a house? A house is one of the biggest investments you will ever make. Paying off your mortgage could take around a decade. Is it better to start soon, or is it more affordable to keep paying rent?
There is a lot to consider when you’re thinking about buying a house, and you don’t want to get stuck in a mortgage you can’t afford or a house you don’t want. This article breaks down some of the risks and benefits of buying a house in your 20s.
Rent or Buy?
Renting an apartment can be expensive, especially in a big city. You could spend thousands on rent, and in the end, you will be no closer to owning your apartment than you were in the beginning.
Paying off your mortgage is kind of like paying rent, but with an end in sight. Eventually you will completely own your property and never have to make another payment.
If you own a house and are paying off a mortgage, you can also rent out a spare room. This can help to subsidize your payments, and you will be giving someone a place to live.
When you’re renting an apartment and a pipe bursts, you call your landlord. If the neighbors are too loud, complain to the landlord. If you have a really great landlord, they will even take care of tasks like shoveling the snow off the sidewalk and maintaining the yard – Millennials are increasingly expecting and looking for these services.
When you own a home, you are responsible for all these things and more. You will be the one who has to handle all these common household problems, and they will happen.
One major advantage of living in an apartment is that you can leave. If you have not completely settled into a career yet, you may end up wanting to move elsewhere for your work. With an apartment, this is easy – find a subletter and get a new place. A house can tie you down to one location, making it difficult to move.
If you are ready to settle down, a house may work well for you. If you are still expecting to relocate, an apartment may be the better choice. Selling a house while it’s still mortgaged is possible, but if the value of the property drops, you could end up in debt or stuck with the house.
The Bottom Line
When you decide to buy a house, be sure to calculate all your expenses. There is more to consider than just the mortgage – there are taxes that come with owning a home, as well as a bigger heating bill for a bigger space, utilities that aren’t split between multiple apartments, and more.
Don’t rush and get stuck with a property you don’t like. Take your time when looking for a home and find the one that is perfect for you.