Good Morning Green Panda Readers. Happy Civic Holiday to (some of) our Canadian Readers. Today we are discussing the right time to buy our first home. Homeownership is definitely a privilege and not a right. Not everyone can afford to buy a home, and not everyone is responsible enough to own their first home. Before we decide to buy a home we should definitely research home ownership to get all of the relevant information, get information regarding the process of buying our first home so we know what to expect, and go over our finances to make sure that we can afford to buy our first home.
In an ideal world the right age to buy our first home is when we have saved enough money to pay for our down payment, moving expenses, and closing costs. However, the reality is that not everyone who can save money is responsible enough to buy a home. And in more cases, not everyone can afford the continuing expenses that come with homeownership.
Buying our first home is a big commitment and we should be both mentally and monetary prepared for the responsibility that comes with buying a home. Just because we can afford to buy our first home doesn’t mean that we should.
The Pros of Buying a Home in our Twenties
Buying a home can be a good investment. However we have to make the commitment to stay in the home for several years and allow the value to increase over time.
We will learn financial responsibility. Buying our first home may be the biggest expense that we will ever have. Even if we aren’t totally ready, we will quickly learn how to budget our income as well as become financial responsible.
It Gives Us Freedom and Independence. Once we move out of our parents home and into our own home or condo our parents can never again use the phrase “As long as you live under my roof, you will live by my rules.” In our own home we make the rules (and break the rules) as we see fit.
The Cons of Buying a Home in our Twenties
There are a lot of reoccurring expenses that come with buying our first home. Buying a Home is not a one-time expense. This is why having money saved for the down payment is not enough of a reason to buy a home. Property Taxes, heating costs, and electric bills can all add up to be very expensive. We should also have an emergency fund in case of an unforeseen expense such as a new roof, replacing a water heater, or a plumbing mishap.
Buying a Home is a lot of work. The upkeep of a home is enormous. There is always something that needs to be repaired or something that can be improved. People who own a home instead of rent an apartment tend to spend more money on the upkeep of their home because it is an expense.
Buying our first home a huge commitment. When we own a home we are committed to our home and to our mortgage. If we need to move or want a change of scenery we can’t just sublet our apartment or move out of our parent’s house. So many things are uncertain and unclear in our life during our twenties and owning a home may not give us the flexibility that we need.
Here are Previous Posts in the Investing Our Money in Our Twenties series:
Traditional Savings Accounts Are Boring!
You are only 20. So take some risk!
How Much Money Do I Need To Buy My First Home?
Photo by Images of Money