“Home is wherever you leave everything you love and never question that it will be there when you return.” -Leo Christopher.

Suze Orman has once been quoted to say ‘Owning a home is a keystone of wealth—both financial affluence and emotional security.”

However, people in their twenties hardly think of investing in their homes. While homeownership has often been regarded as a financial milestone in life, twenty-something individuals would rarely give it a second thought. In fact, many of them would only consider investing in their first home when they are married, have families of their own, and wish to settle down.

Young adults do not often entertain the idea of homeownership as they are just building their careers or still learning how to be an adult. Buying real estate can seem like a colossal responsibility for an individual still making their way in their world. They think of it as one that can wait until they are financially stable enough to afford it. Indeed, the entire process of purchasing your first piece of real estate can be challenging and financially cumbersome. As a result, it is an endeavor that most people would postpone until they are a little older and financially mature to take on. That said, many young adults would opt to rent in lieu of buying a home.

As an individual in your twenties, however, you should not be quick to dismiss the idea of buying your home while you are still young. At the moment, this may seem like an intimidating and even impossible task. But, if you know how to invest wisely, the rewards will definitely be worth your while. So, before you start scouting for properties online and looking for a house and lot for sale in Cavite or elsewhere, it is best to know the advantages of buying a home in your twenties.

ADVANTAGES OF BUYING YOUR FIRST HOME IN YOUR TWENTIES

1.) You will have more freedom

One of the many downsides of having to share your home with another person (whether it is a family member, a friend, or a co-worker) means having to live with their own set of routines. But, more importantly, this also means taking their wants and needs into consideration for any changes or decisions you may wish to make on the property you live in.

If you are renting, you are limited by the rules set by your landlord, which means asking for permission before making any improvements to your home. On the other hand, if you have your own space, you have free rein in doing whatever you want with your home without getting other people’s approval. Nobody will tell you no, whether you wish to repaint your walls or rearrange the furniture to liven it up. Your decisions for what happens with your space are entirely your own.

2.) You can pay off your housing loan faster

One of the benefits of buying real estate early is having more than enough time to pay your housing loan. If you are buying your own home alone and shouldering all the expenses that go with it, there is a likely chance that you will be getting a 25-year mortgage. On the other hand, if you buy real estate property later in life, you may pay debts until you reach your retirement age.

Buying your first home while you are young means paying it off before you get to your retirement age.

3.) You can feel more like a grown-up

As someone making their way in the world, being an adult can feel like a lot. More often than not, you are at an age where you are starting to create your own path on your own terms. It also means taking responsibility for all the choices you make in life. Buying a home on your own early is a hallmark of maturity. It often indicates that you are ready to take on life and whatever it has in store for you.

4.) You will have potential passive income

If there are instances where you may need to relocate to another city or abroad, having your own home means you can generate passive income through rental payments. One of the many worries young adults have in buying a home early on is having real estate property that becomes useless when career or life opportunities present themselves. For example, when a job promotion or an opportunity for relocation opens up, young adults would often think that the property they bought would now be no use.

However, having a home means renting it out and earning passive income. More importantly, real estate investments appreciate over time. Therefore, should you decide to sell your home in the future, the price will likely go up. That said, any real estate property will definitely be a worthwhile asset regardless of where it is located.

5.) You will be a legitimate homeowner

There is pride in homeownership. Finally, being able to say that you are a homeowner is something you can find profound pride in. After all, not many individuals your age can say the same. Buying your own home and being a homeowner means that you are a step closer to creating the life you want in the place that you wish to be. Your home can be a symbol of the hard work you have done and your enduring perseverance in achieving where you are in life right now.

6.) You will learn a lot

While many can consider themselves adults by the time they own their home, having a home at an early age comes attached with a myriad of life’s lessons. As a homeowner, you will be compelled to learn how to manage your finances responsibly.

As a result, you need to exercise discipline in your spending and be smart with your purchases. You will become a fully independent individual and have a great head start among your peers and other people your age.

7.) You will build your credit

Buying your home at a young age means that you are already working with credit. More often than not, you will be obtaining a loan with a financial institution or a direct lender at a young age, which will make your credit history impressive to future lenders.

At this point in your life, you are just starting out. This may mean that you have a car loan, a credit card, or even an installment loan that you have been working with. Having a home loan that you consistently pay back on time helps your credit score rise significantly. In addition, this means being able to afford a much larger home in the future.

8.) You can build your own wealth

Most of the time, young adults opt to rent rather than have their money go towards a real estate investment. Unfortunately, this means that you are only making your landlord richer. It does not help you build wealth, nor do you see any of your rental payments back as the house builds equity.

On the other hand, your monthly mortgage payment goes toward your loan balance as a homeowner. It builds equity that you can call your own, and when you have equity in your home, you can turn it into cash with a home equity loan or refinance. Most homeowners do this to use the loan to improve or renovate their property. More importantly, having more equity means that you have more profits when you eventually decide to sell the home in the future.

9.) Achieve financial freedom

Young people do not often have financial independence and freedom. But, the good news is being a homeowner can be one of the ways to get you there.

Once your mortgage is paid off, you will be rent and mortgage free for the rest of your life. This is no small achievement for someone at a young age. Just imagine how easy your life would be if you did not have to fork up a few extra thousand pesos each month. More importantly, you can even think of having an early retirement once you have finally finished paying off your largest expense.

BOTTOMLINE

All that said, buying a home in your twenties is an investment in you. You have plenty of good reasons to consider buying a home this early. At times, it may seem that a job or temporary living arrangement will make homeownership impossible. However, there are still plenty of good reasons to consider it.

From a financial standpoint, building equity early or having the ability to collect rental payments from long or short-term tenants make a lot of sense. Also, if you consider how house management can make you more mature as an individual, it makes homeownership even more compelling.

So, think about where you are in life right now and invest wisely. As you navigate the world, your priorities will change, and you will face different challenges. With your own home, you are finally free to be your own person.