Many individuals in the millennial section of the population that have recently graduated college are considered purchasing a home. Knowing about all of your options and making an informed decision can be critically important for identifying the right property for you and making sure that you make a transition as effectively as possible. Read on to learn more about four things you should know before buying a home so that you can determine whether it’s the right fit for you.
Buying a New Home Is an Investment
Renting a home is not an investment which is why it can typically be done in an easier process. The majority of recent college graduates have no investments available. A lot of your money goes towards necessities. Investing now by buying a home is one of the most practical investments that you can make because it helps you to build equity.
“I’ve worked with many recent graduates who treat buying a home as much an investment as much as they do a purchase of a home.” says Ella, Founder of Chance Realty. “Over the years I noticed more students being more aware of how their financial decisions today will impact them down the line, and buying a property vs spending an equal amount on renting one is a wise decision.”
The Housing Market is Now Safer
Many millennials and recent college graduates have held off on purchasing a home because of fears about the most recent housing market collapse. Many college graduates have also watched their own family members struggle during the burst of the housing bubble, but the good news is that the housing market crash and recession has actually made it safer to invest in real estate.
Home ownership is no longer a big risk and the recovery of the housing market has helped to strengthen it as well. If you held back in the past, make sure you look into your options today.
Ask for Help When You Need To
One of the most challenging aspects of attempting to buy a home is the down payment. It can be manageable even if you are a recent college graduate. If you have a stable source of income, you can use this to budget and set money aside every month to build up enough for the minimum down payment which is usually 5 percent. You do need to make sure however that you can afford the monthly mortgage payments and costs associated with buying a home, such as maintenance and private mortgage insurance. Having a budget plan and working towards it can give you a great deal of peace of mind about your new investment.
The Best Time to Buy is Almost Always Now
While you can never predict the future as it relates to mortgage rates, feeling like you're on the cusp of being able to afford buying a home is strong indicator that there is a great opportunity available to you. Choosing to plan ahead wisely and working with a team of experienced professionals such as a realtor can help you answer all of your key questions about owning a home and allow you to lock in a rate that you can live with now.
There will always be reasons to put off buying a home or making other investments but it is often better for you to consider how making this investment now can benefit you for many years to come.