Owning a home early on in life is rewarding in more ways than one!
As daunting as the home buying process is, it can seem even more overwhelming early on in life. However, owning a home at an early age has a plethora of long-term benefits for buyers under the age of 35. The long-term benefits of buying a home early outweigh the consequences of delaying homeownership.
There are many reasons why young folks are hesitant to become homeowners. Many of the hallmarks of sustainable homeownership – like having a 20% down payment, excellent credit, and reliable income – are still works in progress for people under the age of 35. As a consequence, young people often have reasonable qualms about entering into homeownership. However, a monthly mortgage payment enables homeowners to build equity instead of paying rent, which only builds equity for their landlord. Therefore, investing in a house early on allows homeowners to build wealth for themselves by retirement.
There are many benefits to buying a home in your twenties or early thirties. Two of them are significant factors in motivating young homeowners:
First, a young homebuyer’s property gains value exponentially by the time they reach 60. Analysis by housing experts at the Urban Institute suggests that those who become homeowners before the age of 32 realize about $72,000 in additional homeownership-related wealth compared to those who purchase their first home after the age of 32. It’s a safe bet that, over time, your home investment will appreciate. This is a clear indication for youngsters to invest in a property early since they can generate wealth until retirement without the burden of paying off a mortgage.
Second, investing in a property is a great way to earn income down the line through renting. Utilizing your house as a rental property becomes a beneficial asset that generates wealth. An edge for young homebuyers is that they can rent portions of their house to their close friends or relatives and use that money to pay the mortgage. Sharing a housing unit at a younger age is more feasible than when you’re over 40 and have a family.
So how can you overcome the initial fears that keep you from buying a home in your twenties? Well, the “Address Yourself” program works to help New Jersey residents acquire equity and a positive homeownership experience if they are in the Low-Moderate-Income category. Our goal is to break down the barriers that hold you back from homeownership; therefore, if you are a first-time homeowner, Address Yourself will provide you with Down Payment Assistance (DPA). Additionally, Address Yourself offers various homeownership programs in almost every county in New Jersey.
Among the various homeownership programs, Address Yourself offers, here are a few: New Jersey Community Capital DPA, and Hudson County Economic Development Corporation DPA. Let Address Yourself help you make your homeownership dreams come true early on. Your next step is to reach out to us!