Buying a home is a big deal. After all, it shows the world that you have your stuff together. But if you’re in your 20s, rushing into homeownership might not be as great as it seems. This decade of your life is for you to figure things out, like your career & how you want to spend your money, among other things. Here are eleven reasons why buying a house in your 20s isn’t worth it.
Keeping Your Cash Flexible
When you’re starting out, your paycheck usually isn’t what you dreamed of and buying a house will lock up your earnings in one place. Renting gives you the freedom to save up so that you can do what you want with your money. There’s really no point in restricting yourself and your money right now.
Changing Jobs is Easier Without a Mortgage
Your 20s are prime time for career exploration, such as switching jobs or trying out a new field. You could even move cities for that dream opportunity, but owning a home will complicate these decisions. If you’re renting, you don’t need to worry about selling your house or dealing with a long-distance mortgage.
Emergency Fund
Most people in their 20s are trying to build a safety net of savings but owning a home means unexpected repairs are on you. These can hit your wallet hard. Thankfully, you don’t have to worry about this when renting; the landlord deals with any surprises like a busted water heater, not you.
Student Loans Are Still a Thing
You’re likely still paying off college in your 20s and those monthly checks are hefty. As such, adding a mortgage on top of student loans creates a lot of debt to pay off. It might be smarter to lighten the load before taking on a home loan. Do you really want more debt on top of debt?
The Housing Market Can Be a Wild Ride
Real estate has its ups & downs and in your 20s, you might not be ready to deal with that. For example, if you buy a home, you may need to sell it in a hurry if life changes. You could end up losing money if the market’s not in your favor.
Essentially, it could cost you a lot more; so why not save that cash for something else?
Freedom to Roam
Your 20s are for adventure & trying new things; and, yes, making some mistakes. Owning a home ties you down to one spot where you’ll be limiting your life experience. But renting allows you to live where you want and move freely without the anchor of a house holding you back. Better yet, you can travel a lot more easily.
Houses Come With Chores (and Bills)
Remember how excited you were to move out & not have chores? Unfortunately, a house comes with plenty of those, plus the bills for upkeep. Depending on your contract, renting could mean that someone else deals with chores, like mowing the lawn and fixing the leaky faucet. They’ll even replace the broken fridge.
Taxes and Insurance Aren’t Cheap
Beyond the mortgage, owning a home involves plenty of other fees like property taxes & homeowner’s insurance. You might also have to pay homeowner association fees. These extras can really add up and eventually make the cost of owning a home a lot higher than you might expect.
Mortgages Aren’t Easy to Get
Speaking of mortgages, they’re quite difficult to get and especially in your 20s, since you need a solid credit history & a decent income. Even then, you might end up with higher interest rates simply because of your age. It’s often easier to wait until your situation is more stable; not to mention, more financially sensible.
Investing Elsewhere Could Pay Off More
The cash you use for a down payment and other home-buying costs could be making you more money elsewhere. Think about it, you could use it to invest in the long term through stocks or bonds. These could give you better returns than sinking it all into a house that may or may not be worth it.
Life’s a Moving Target
In your 20s, predicting your future is harder than ever. As such, the starter home you buy now might not fit if you decide to start a family or change careers. You may even change your mind about where you want to live. Selling & buying again costs more time, stress and money than it’s worth.
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