Many college graduates today shudder at the idea of buying a home when they are already faced with so much student loan debt and a job market that is inconsistent. According to U.S. News and World Report the percent of Millennials (Generation Y) that were homeowners dipped to 36.2% in 2014. The number has been slowly improving since then however the benefits to homeownership are plenty and buying young can be extremely beneficial in the long run.
Your Money Works For You – When you pay rent your money goes directly into the pocket of your landlord. When you pay a mortgage you are investing in your future by paying down the principal on your home each month. A smart real estate investment can be a great way to boost your retirement.
Tax Benefits – There are some great tax benefits to owning your own home. You can deduct the interest you pay towards your mortgage from your taxable income which will reduce what you owe in taxes for the year.
Resale Increases – Even with recent real estate value dips, the Upper Valley has maintained strong real estate values and boasts a very busy spring market. If you are committed to your home and you maintain it and improve it during your time there you will likely be able to increase the real estate value and make more then you paid for the property.
Low Interest – Interest rates are still very low but if you decide to wait another 5 years before you buy, it may no longer be the case. Many experts believe interests rates will not be this low again.
Debt Free Retirement – One major benefit of buying a home when you are young is that you can have it paid off when you near retirement age. This will give you the opportunity to focus on saving for retirement and reducing your debt. With the current concerns surrounding Social Security it’s more important then ever before to have a solid retirement plan in place and you’re never too young to start.
The Pride of Homeownership – Owning a home is a source of great pride. Young people can begin to take on more responsibility and also enjoy the benefits of being part of a community. This comforting feeling can help balance other pressures.
If you have been avoiding buying a home, it may be time to start your search. With the spring market approaching there will soon be a significant increase in real estate inventory. First time homebuyers have a lot of buying power in the spring market because they do not have to sell their current home before they move forward. If you are considering buying a home this spring there are a couple of things you definitely want to do first.
1. Obtain Your Loan Pre-Qualification – You want to start your home search out in the right budget. Sitting down with a seasoned loan officer will give you an idea of how much home you can afford.
2. Find a Buyer Agent – You want to take the time to find a local buyer agent that can help you navigate the complicated process of buying a home. The commission of the buyer agent is paid by the seller and their entire focus is on you, the buyer during the real estate transaction.
Once you’ve checked off these boxes, you’re ready to start searching for your new home.