A house is one of the most significant investments you’ll ever make. But people often wait too long to purchase their first home because they’re afraid of the responsibility or think they can’t afford it. Many people also believe they should wait to buy a house until they’re married or have children. But there are several reasons why you shouldn’t wait to buy a home, even if you’re single or don’t have children.
Here are some of the best reasons to buy a home early in life.
1. You’ll save money in the long run.
If you wait too long to buy a home, you’ll miss out on years of potential savings. When you own a home, you build monthly equity as you make your mortgage payments. Equity is the portion of your home’s value that you own outright, and it increases as your home’s value goes up, and you pay down your mortgage.
If you wait to buy a home until later in life, you’ll have to pay more for the same house because of the increased demand. And, if you wait too long, you may not be able to get a mortgage at all.
When getting a home loan, lenders typically want to see a debt-to-income ratio of no more than 43%. That means your total monthly debts, including your mortgage payment, should be no more than 43% of your monthly income. But if you wait until closer to retirement, your ratio may be too high to qualify for a loan.
2. You’ll have more time to enjoy your home.
Younger homeowners have more time to enjoy their homes than older homeowners. And as you age, your home can become a valuable asset that provides you with financial security in retirement. Some people even downsize in retirement and use the equity from their home to purchase a smaller, more manageable property.
If you wait too long to buy a home, you may not have as much time to enjoy it. And, if you’re retired or close to retirement when you finally purchase a home, you may not be able to take advantage of all the amenities available to younger homeowners. You may also find it more challenging to keep up with the maintenance and repairs on an older home.
3. You can take advantage of tax breaks.
When you own a home, you can deduct the interest you pay on your mortgage from your taxes. This deduction is available for both primary and secondary homes. And, if you itemize your deductions, you can also deduct property taxes.
The mortgage interest deduction is especially beneficial for young homeowners because they typically have larger mortgage payments than older homeowners. This deduction can save you thousands of dollars over the life of your loan. Some other tax benefits of homeownership include the exclusion of capital gains on the sale of your home and the ability to deduct home office expenses.
4. You can build your credit.
Your payment history is the most important factor in your credit score. And, when you make timely mortgage payments, you can build your credit and improve your chances of qualifying for loans in the future. A good credit score can save you money on future loans and help you get approved for credit cards with lower interest rates and better rewards.
But, if you wait too long to buy a home, you may not have as much time to build your credit. You should also be aware that late mortgage payments can damage your credit score. So, if you buy a home, ensure you’re prepared to make your payments on time.
5. You’ll have more stability in your life.
One of the best things about homeownership is the stability it can provide. As a homeowner, you’ll have a fixed monthly mortgage payment. And, unlike renters, you won’t have to worry about your rent going up yearly. Homeownership can also provide you with a sense of community and belonging. When you own a home, you’re more likely to get involved in your neighborhood and meet your neighbors.
You also won’t have to worry about moving as often. According to the National Association of Realtors, the average homeowner moves every five to seven years. Renters move much more frequently, with some people moving every one to two years. This increased stability can be beneficial for families with young children.
Many people view homeownership as the American dream. And, for a good reason. Homeownership comes with several benefits, including financial security, stability, and tax breaks. If you’re thinking about buying a home, don’t wait too long. The sooner you purchase a home, the more time you’ll have to enjoy all the benefits that come with it.
