By: Grant Barnum
“Millennials prefer to rent.” “Millennials are waiting to buy their first home.” “Millennials take the lead in new home buyer growth.”
Look here’s the deal, I understand it’s not an easy decision when you are constantly surrounded by conflicting headlines and news articles! I’m here to put aside all of the media noise and tell you why you SHOULD buy a home while you are young!
#1. Seriously who doesn’t want more MONEY??
Money, cash, coin, moola, paper, stacks, dough, cheddar, or bacon.
Ok I’m starting to make myself hungry with all these slang words! Call it what you want, everyone wants more MONEY! If you truly want to take that next step in life and advance your own personal wealth, put your money into real estate!
Nervous about the payment? In most cases your mortgage payment will be less then your rent. Still not good enough? Buy your first property and rent out individual rooms to your friends. You are buying equity into your property each month that you make a payment and your renters are paying for you to either cover some or all of the payment (depending upon what you charge them). Add normal appreciation to that and your building more equity (ownership)!
#2. Your first property might not be your dream home.
Your first home might not be your dream home- and that’s ok! If your first property is a starter home, it could make for a great rental property in the future. Even if you don’t want to be a landlord renting to tenants, you could do some DIY (do it yourself) projects to slowly update the property and increase the value outside of normal appreciation. When you are ready to sell, take your sweat equity + appreciation and roll it into your next home purchase!
#3 Speaking of property appreciation- sit back and watch it rise.
(Appreciation= Gain in Value) It’s pretty much a given that your home will not only hold its value but also increase in value over time! A benefit of buying a home today is that you are gaining that possible value when your home appreciates. On average, home values appreciate 5% to 10% each year and are predicted to keep increasing. Yes, from time to time these increases fluctuate but by the time you’re ready to sell or retire, your home could be worth much MORE than what you paid for it when you were young.
#4 No more living out of moving boxes and tubs!
You finally can “settle in” and make your new property your home! After moving from apartment to apartment or living in a dorm room, you can appreciate having your own place that you can finally make yours! You can finally buy the furniture you want and enjoy being comfortable because you no longer need to worry about moving that heavy furniture every year! It’s a great feeling knowing you don’t need to worry about moving anytime soon if you don’t want to.
#5 Building LONG TERM Wealth
We ALL need somewhere to live! Start building equity at a young age so one day you can own your home free clear or become the landlord. Either way the goal is to hopefully set yourself up for retirement. You could spend the next decade renting and have nothing to show for it, or you could take that money you would’ve spent and invest it into your own property. Remember renters make landlords rich, because they wouldn’t be a landlord to lose money! If you have a stable income and want to invest in your own future, buying real estate is a no brainer to growing your wealth.
Did this article get you excited about own your own property but you’re unsure about the down payment? There are many incentives for first-time home buyers to reduce the amount needed for a down payment. Ask one of our Real Estate Agents about some different options you might have, and they will get you connected with a local lender to find the best options for you!