Complete Guide to Owning a Home in your 30’ s
Complete Guide to Owning a Home in your 30’ s
Hi, I am in my 30s and believe I am ready to own my home. Do you have any advice, suggestions, or tricks that I could use?
If you're in your 30s and considering homeownership, congrats on your desire to take this significant step in your life! According to research, most people begin thinking about homeownership in their 30s and achieve it by the age of 35. However, there is no right time for homeownership, at whatever age you decide to take this step you should feel a sense of pride and achievement. Homeownership is a significant achievement that should be celebrated regardless! According to a Financial Samurai article, the average age of property ownership in 2021 was 33 years as younger persons now saw the importance and need to become homeowners and invest in real estate.
Although there is no 'right time' to become a homeowner, it is best to buy when you are young to get as much bang for your buck. Experts believe that homeownership in your 30s is ideal because individuals in their 30s are seen as more mature, as having larger savings and a partner who is committed to and involved in the purchase. In their 30s persons are also expected to have good credit.
If you're wondering if the right time is now, the answer to that question is there is no such thing as a perfect time when it comes to wanting to own a home. A number of factors, as well as the individual's goals, finances, and choices, should be considered when determining the level of readiness to become a homeowner. Some people may be ready to buy property at the age of 25, while others may be a little later, at the age of 45. Whatever age it is, we should all keep in mind that the optimal time to buy a house is determined by your answers to a few personal and important questions, which we discussed in a recent blog, "3 Mortgage Tips for 1st Time Homebuyers." https://bit.ly/3KEwRF9
If you're in your 30s and considering buying your first home or moving to a larger property, here are some important factors to consider.
Tip 1: Have a steady source of income
Before thinking about becoming a homeowner you must first think about being self-sufficient and financially independent. Unless you have a lot of cash saved by the age of 30 or have inherited a large sum of money, you must grind, work hard, and save. You can achieve financial independence by finding a stable job, starting a business, or better yet both. It should be stable in the sense that it should offer a consistent monthly cash flow. When it comes to applying for a house mortgage loan, if your work or business is seasonal or unstable, you may face some difficulties. Having been in the same employment for more than two years is considered a plus because you are regarded as financially stable. If you're considering starting a business, make sure it's not seasonal or you can turn a seasonal need into a continual one. You can do so by determining the demands of your target market and developing products or services to meet those needs.
Tip 2: Save 20-30 percent of your monthly salary
Remember the fifty, twenty, and thirty percent rule? This is when it comes into play. It is suggested that you save aside 20 to 30 percent of your monthly income which can be used to put towards your down payment. You might be wondering how long and how much money you'll need to save. You should have at least 20% of the amount you want to borrow on hand before applying for a loan. The amount of time it takes will be determined by the amount of money you want to apply for and the amount you can save on a monthly basis. Even though most lending institutions only require a 5% to 10% down payment, having extra money saved up than is required is always a plus.
Tip 3: Live according to your means
Many young people choose to spend their money on items such as designer clothing, shoes, cutting-edge technology, and travel. We can all agree that saving isn't enjoyable, but what's not to like about shopping..right? A day of stress relief might include a little shopping and indulging, as well as enjoying the fruits of your labor. However, if your ambition to acquire a home is greater than your want for luxuries, you should consider twice before spending your hard-earned money. Remember that shopping is enjoyable for a short time but spending sensibly is more rewarding in the long run.
Managing your money early is the key to acquiring a home in your 30s. Have a savings plan and a goal in mind and try to stick to it as much as possible. Make sure you allow room in your budget for a little fun and spending. Saving can be fun and there are many online saving challenges which you can do that will motivate you to save. Remember your why when you are having trouble saving.
References
How to Be a Homeowner in Your 30s. (2021, November 4). Lessandra. https://lessandra.com.ph/blog/
sweeney. (2021, November 9). Buying a Home in Your 30s? Here’s Everything You Need To Know. Real Estate News & Insights | Realtor.com®. https://www.realtor.com/
The Median Homebuyer Age Is Getting Older: We Better Live Longer! (2020, September 11). Financial Samurai. https://www.financialsamurai.
