Owning a home is a big step in life. It’s one step that comes quite later in life for many, although they would prefer it happened sooner.
That is because the cost of owning a home continues to increase for every generation. For many young adults in their 20s, if they bought a house today, it could throw them into a pile of debt or even close to bankruptcy. That can scare someone away from owning, and continue renting or living in their parent’s basement.
Don’t let buying a home scare you away. It is doable to purchase a property in your 20s if you have a plan. Consider the following five tips to help you afford your first house in your 20s.
Don’t Be Overly Picky
When you’re young and looking at your first house, there is only so much you can be picky about. Although it would be nice to get your dream house right away, with the massive yard, large windows, two storeys with everything else you could imagine, the chances of you being able to afford that are quite slim. So, by lowering your expectations to a point, it will open up more options within your price range.
Determine What You Can Afford
Knowing what you can afford for a home will help you shop around. There is no sense in looking in a neighborhood that is completely out of your price range. Use a mortgage calculator, like the one from www.uffexpress.com to see what your monthly payment would look like at different interest rates and down payment.
Being able to afford a home is more than the down payment. It also includes if you can afford to pay your mortgage every month.
Cut Your Spending
When you’re in your 20s, it’s the prime time to live life to the fullest. Going out with friends, traveling the world, all of these exciting things you want to do that costs a lot of money.
If you’re serious about buying a house in your 20s though, it’s time to start cutting your spending by as much as you can. Trim your budget so that you can put aside more money each month for a down payment.
Budget for Saving
Speaking of a budget, if you don’t have one already, start making one. Build a budget that revolves around you getting yourself into a home. You’ll be able to see what you bring in every month and what is left over after you divide that number between your monthly fixed expenses.
Get a Side Gig
Want another fast way of saving money for your home? Bringing in more money will do just that. Getting a side gig to help put more money into the savings account will benefit you when it’s time to make a deal.
A side gig can be anything from a part-time job at the local restaurant to selling handmade crafts from a hobby you love. Whatever it is, if it can help bring in an additional source of revenue, it will help you get into your first home that much quicker.