Are you really ready to buy a home? Too often this question is asked by young homeowner hopefuls and in many cases, friends or family members, or the individuals own insecurities keep them from purchasing a home in their 20’s. As the next generation starts to reach adulthood, many people may be left wondering if they’re simply too young to purchase a home. Younger generations started preferring rentals over homeownership over the past 10 years, which created the notion that you may be too young to buy a home.
What Made Rentals Popular?
There are a few reasons that rentals started to become the more go-to option for younger individuals, 3 of the most popular reasons being:
- Rentals don’t require a down payment
- Rentals don’t require a long commitment
- Rentals handle home maintenance and repair for you
Related: Understanding Down Payment Gifts and Where they Come From
What’s the Flip Side?
These three reasons to rent vs. buy have created a false pretense that you may be too young to purchase a home however, this couldn’t be further from the truth. Many people have started to debunk these common misconceptions which is opening the eyes to many younger buyers, and in-turn, many younger buyers are becoming homeowners. Let’s debunk these common misconceptions:
While many real estate professionals feel that having at least a 20% down payment to purchase a home is the “best” option, it is important to know that it isn’t the only option. Many loans will only require a 3% down payment, and in some instances, you may even qualify for a special first-time home buyers’ loan where you’ll have to put 0% down, this opens a door for homeowners of all ages, regardless of how much you have in your savings account.
Related: Before House Hunting: A First-Time Buyer’s Checklist
For some, the thought of purchasing a house means that you plan to be there for the long haul, a minimum of 30 years, however, this is also a myth. Purchasing a home, even if you only plan to be there temporarily can be a great asset. You can either keep the home and use it as a rental property, generating income, or you can sell the home and use the proceeds on your next endeavor.
For many, especially those that have become accustomed to rentals, the idea of having to conduct your own home maintenance may be daunting. While you are indeed responsible for maintenance and repairs when owning your own home, with home warranties, a lot of the more difficult repairs may be covered. Additionally, while you would have to pay for the service out of pocket, by setting a monthly home maintenance budget in case of maintenance or repair, you can hire professionals to conduct the needed work.
Ultimately, buying a home isn’t limited to anyone of a certain age, and now more than ever, the real estate market is starting to see a rise in millennial buyers and even generation Z buyers have entered the real estate pool.
If you’re currently searching for a new home, are ready to sell your home and need a qualified seller’s agent to assist you, or if you have any further questions regarding Carolina Real Estate, please feel free to contact our office at any time.