The recent house market trends have revealed that fewer and fewer millennials are opting to buy their own homes, preferring to rent instead. Renting a flat or house is convenient, with fewer responsibilities on the part of the tenant and even lesser commitment needed in terms of the location and neighbourhood. When the mood strikes, millennials can simply pack up and move to a new area every year. However, there is a significant portion of the youth, particularly in our part of the world, which is quite eager to own a house at a fairly young age. Be it due to the stability you want to offer to your ageing parents or the need to provide a roof over your own budding family, buying a house in your 20s is possible if you are dedicated to the cause.
Is It Possible to Buy a House in Your 20s?
Let’s address the elephant in the room, shall we? Is it even possible to own a house in your 20s? Honestly speaking, yes, it is. But it requires dedication, commitment, a sense of responsibility, a saving habit, and the will to have ownership of your home. Here are some hidden gems of advice for all those who want to buy property at a young age:
- Determine where you want to live
- Boost your savings
- Plan for future expenses
- Be ready to make the commitment
- Don’t let peer pressure get to you
- Choose the house wisely
Now, let’s help you buy a house in your 20s!
Determine Where You Want to Live
Buying a home means living in one area in the long run. Thus, if you want to buy a house in your 20s, you need to first determine which neighbourhood you want to settle in. Ideally, purchase property in your hometown or somewhere close to your parents so you always have family close by to visit on Eid, other occasions, and during an emergency situation.
Aside from family ties, consider your career goals and future plans. There’s no point buying a house in Lahore as a student if you’re about to return to Karachi after graduation. Similarly, if your work keeps you in the capital for more than half the year, don’t simply buy a home in Karachi because your family lives there. Consider which city and which area you want to reside in before you start scouring the property market for the best deals.
Boost Your Savings
When we’re young, we’re impulsive, and we want the best that life has to offer. As a result, whatever we’re earning is spent on hanging out with our peers, buying the latest tech, and eating out at the trendiest eateries. Keeping reality in check, a very few of us focus on even saving up for a rainy day, let alone for property investment. But buying a house in your 20s is a significant investment—one of the biggest that you’ll make in life. This requires not just a saving habit, but disciplined expenditure as well so you can save as much as possible for your early investment.
Along with curtailing unnecessary expenses, consider taking up means of extra income. This could include freelancing, tutoring, opting for part-time employment with ride-hailing apps, and others. This will help you earn more and save more. Ideally, you should be saving about 20% of your income from your late teens to your mid-20s on a monthly basis if you genuinely want to buy property at a young age.
Plan for Future Expenses
Buying a property comes with upfront costs, including down payment and monthly instalments on the house or flat. But that are so many hidden costs that you need to prepare yourself for as a homeowner. Thus, saving for the house does not mean saving for the initial investment alone. It also includes all the unforeseen home maintenance and repair costs that you might come up from time to time. Save and spend wisely, along with keeping some of your savings aside for that rainy day when your house might spring a leak [not literally, we hope].
Be Ready to Make the Commitment
Owning a house in your 20s is an added responsibility, especially when you’re young and carefree about life. Thus, if you’re about to make an investment, know what you’re about to get into. Buying a house and maintaining it might not be a lot of work, especially if you invest your money on a newly developed housing scheme, but it is, undoubtedly, an additional responsibility on your young shoulders at a time in life when all you want to do is hang out with friends and spend your time in carefree leisure.
Don’t Let Peer Pressure Get to You
This is the most important advice we have for young investors. Do NOT let anybody else’s opinion shake your decision regarding making an investment. This does not mean you disregard advice from your realtor or your parents. However, if your friends are telling you there’s plenty of time to buy a house later on in life, and that you should be ‘chilling’ with them instead of visiting potential housing projects, don’t let their opinion and peer pressure bother you.
Peer pressure often affects the decision-making of the youth, but remember, everyone follows their own timeline and has their personal goals. If you want to be free from the hassle of paying rent every month and provide for your family, your friends’ opinions and taunts should not impact your savings and future investment goals.
Choose the House Wisely
Buying a house is a long-term investment, so it’s best to take your time and make the decision wisely. We talked earlier about determining the location of your new home. Some other factors to consider when buying a home include the number of rooms, the interior layout, the size of the plot, the age of the home, the fixture and fittings that the house is being sold with, the condition of the house, the purchasing price, and the seller’s motive behind selling the home. Know exactly what you want from your investment before you choose to buy one.
These are some small tips and tricks for you, a young investor, so you can make your dream of buying a house in your 20s come true. Stay tuned to Zameen Blog for more property investment advice or type in your query in the search icon on the top right of the page to find the investment advice you’re looking for. Reach us at email@example.com if you have some experiences, tips, and tricks to share with us.