Buying Your First Home In Your 20's
Buying your first house can be an equally exciting and daunting time at any age, particularly if you are in your 20's. It represents a major milestone and is a sign to you, your family and your friends of the growth in your adult life. However, balancing your busy life of working, keeping up with your hobbies, maintaining a social life along with the added responsibility (and debt!) of owning your first home requires a lot of careful thought and planning to ensure that it aligns with your personal situation and financial goals.
Before buying your first home in your 20's and making big decisions, it is useful to consider the following tips from those who were once in a similar position to the one you are facing now.
When buying your first house, it's important to consider the long term financial value the property to ensure it aligns with your financial goals. One consideration is to use your first home as an investment property as a means to work towards your long term financial independence.
Invest long term
Acquiring a mortgage on an owner occupier property can be more difficult if you're studying or early on in your career. However, renting out your first home as an investment property (and using your tenants) to pay off your mortgage may allow you manage your mortgage more effectively.
Banks, credit unions and other financial lenders want to see evidence of strong and consistent savings over time. By creating good saving habits as early as possible, particularly when you are young, whether it be from full time or part time work, you put yourself in a better position to have your loan approved.
Save smart and frequently
Build a strong record of clean credit as early as possible from when you start earning money. This means ensuring all your bills are paid off within time. If for whatever reason you are not able to, it is important to make alternative arrangements with your creditor as they may lodge a default claim against you if arrangements are not suitably made.
Maintain clean credit history
As with most things, there is always an opportunity to learn from others. For many people, buying a house in their 20s is likely their first major investment. It is important to learn from and speak to as many people who have gone through the same process to gain a realistic perspective of the financial journey as well avoid any common mistakes or pitfalls.
Learn from others
As with everything, it is simply best to learn as much as possible and be realistic with your current and future goals so that you plan accordingly. If done right, you can be sure to either enjoy your first home or build the start of your lucrative investment portfolio!
Thinking of buying your first home? Get in touch or find out if you qualify with our loan calculator.
Posted by First Home Buyers Direct on 22 February 2017 | 0 comments
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