The average age of first-time buyers has been rising steadily, and today many people don’t manage to buy their first home until well into their 40’s.
If at all. Years ago, our parents’ generation bought houses as soon as they started work or got married. Well before having children. They’d raise families in that same house. Only moving if they needed more space as their family grew, or when the kids left home, and the house was too big.
Now, those married with children can spend years moving between substandard rental homes, struggling to save the huge deposit they need. Only to find they can’t get a mortgage when they do. More people than ever before are finding that even at retirement age, they still need to find money for rent. However, buying in your 20’s is still possible. And recommended. Here’s how you can do it.
Stay at Home
The best way to manage to buy a house in your 20’s is living at home with your parents until you are ready. Generally speaking, parents charge significantly less rent than private landlords, and you won’t have to worry about things like home insurance.
Obviously, this isn’t always an option. But, if you’ve got a good relationship with your parents and enjoy living with them, it could give you a great head start when it comes to getting on the property ladder.
Ask for Help
Your parents can help in another way. Financially. Many people that buy a house in their 20’s, or even later, do it with financial support from their parents. This could be lending money towards a deposit or being a guarantor on your application. Speak to your parents and a mortgage adviser to see what options you may have.
Getting a mortgage is always tough, but you’ve got a much better chance of being approved if you save a larger deposit. It means you are asking to borrow less, but also shows that you are good with money, have the ability to save, and can live off a smaller income.
Getting into debt is never a good idea. And many young people with credit cards get carried away and make mistakes. But, not having a credit history is just as bad. You’ll need a good credit score to get a mortgage and have a chance of buying real estate, and to do this; you need to build a credit history. Take out a credit card, but use it very carefully. Then look at other easy ways to build your score.
Remember, the first home you buy doesn’t have to be the house you live in for the rest of your life. Buy smaller to get a foot on the ladder. Just think, you could have paid the mortgage off by the time you are ready to move again, giving you a massive deposit for a bigger property.
Owning your own home in your 20’s can set you up for life. Even if it’s not “the” home and you move again before you settle with a family, it’s the best start possible.
This is a collaborated post.