5 Reasons It's Worth Buying Your Dream Home in Your 20s

Coming home to a white picket-fenced home has always been the American dream, and while people’s styles differ and change through the years, one goal transcends all times: the desire to settle down in a welcoming space that you can call your own. Unfortunately, the reality is that many people find homeownership elusive, which is why most put off the idea until their later years. 

Rarely do young, hard-working individuals imagine they can unlock the key to “the single-family home” or “the two-family home” in their 20s. But with the right guidance, homeownership can become a reality for younger buyers, especially with their own ingenuity and creativity. But why should you hustle for a home so early? 

Why It’s Worth Investing in a Home in Your 20s

Benefit #1: You Have More Years to Pay Your Mortgage, Meaning You’ll Reach a Mortgage-Free Life Sooner

It is true that paying your mortgage can indeed be a long-term experience, but if you start paying monthly dues at a young age, you’ll find that you’ll be mortgage-free sooner.

With the average mortgage term currently at the 30-year mark, you’ll be able to reward yourself with the benefit of a paid loan, and build up your credit score, in less time if you begin paying at a younger age. Additionally, the more you pay, the less interest you’ll owe, which will help you save more.

Benefit #2: You’ll Build Equity Faster

The longer you’re in your home, the more equity you’re building. Plus, you’ll get a head start on your retirement fund if you invest the equity in your home. By your 20s, you’ll have plenty of time to build up your equity compared to a person who buys a home in their 40s.

Benefit #3: You Can Enjoy a Tax Deduction

If you’re buying a home in your 20s and you don’t have a family, you can buy a nice, single-family home and enjoy a tax deduction on your income taxes. If you’re able to deduct mortgage interest from your income taxes, you’ll be able to save even more during the time you’re paying your mortgage.

Benefit #4: You’ll Have More Time to Save for a Down Payment

Making a down payment is often the biggest hurdle to a down payment since it requires you to have extra money on hand. If you have extra money from your job or from your parents, you’ll have time to build up a nice down payment in your account before you start your search for the home of your dreams.

Benefit #5: Improve Your Financial Skills Earlier for Better Decision-Making in the Future

As you gain financial experience and mature, you’ll be able to manage your money on your own without your parents involved. This way, you will be in control of your finances so you can make choices that you’ll be able to handle. 

The Bottom Line: The Wonders of Becoming a Homeowner in Your 20s

If you’re thinking of buying a home in your 20s or even your 30s, don’t think of it as a bad idea. Homeownership is not easy, but with the right mindset and discipline, you’ll be able to whip out your checkbook and tell the bank you’re ready to pay a monthly mortgage payment.

Are You Looking to Buy or Sell a Property?

If you’re in the real estate market, reach out to our experts at Folsom Realty! We know the real estate business and we have helped many people buy and sell their homes. Contact us today for a free consultation!