In today’s real estate market, it is not unknown that many people would want to invest their money on houses instead of other types of assets. This is because house values, even in Damansara Damai, always increase with time, which can be very beneficial if you intend to earn extra income in the long run. Many also wonder if it is possible to purchase a house in their 20s. Do you want to know how to purchase a home in your twenties?
We understand if you’re unsure it can be done. Because of entry-level salaries, student loans, and a desire to simply be carefree and have fun, many 20-somethings believe that buying a home is out of their reach. No way! It is completely possible to purchase a property in your twenties and become a first-time homeowner, and doing so will pay off handsomely in the long run. Of course there are many things to know and keep track of when you are planning on purchasing your very first house in your 20s. Here are some tips on how to make your home-buying ambitions a reality far sooner than you think.
Put money aside for a down payment.
Renting is not the same as owning a property with a mortgage. You’d best have some extra savings aside for a deposit on your mortgage at your point in life, a lot of cash in fact—to manage to buy a property. Most financial advisors advise first-time buyers to put down a 20% down payment on a home. That would equate to RM100,000 on a typical RM350,000 home. If you don’t have much in the way of funds, one method to make the down payment is to approach your parents for financial assistance. Applying for down payment aid is another way to pay for the deposit.
Buy a starter house.
You don’t have to find your permanent home right away if you’re a first-time home buyer. In actuality, there are several significant financial advantages in purchasing a starter house while still in your twenties. For starters, your mortgage costs will most likely be lower because you’ll be purchasing a less expensive home. Second, you may be eligible to secure a lower interest rate with a 5 or 7-year customizable mortgage than you’d get from a 30-year fixed-rate loan—an excellent choice if you plan on relocating to your ideal house before the loan’s interest rate lock ends. Consider buying a starting home with the help of your real estate agent.
Make a budget for unforeseen household expenses.
Every house buyer should have a rainy day fund to cover unexpected home repairs like roof repairs or an equipment malfunction, as well as monthly payments, settlement costs, coverage, and property taxes. This is particularly true for inexperienced or first-time purchasers. Why? Many millennials, according to research, are less fiscally responsible than previous generations. More than 9 out of 10 younger generations overspend, fail miserably on savings, or take on new loans at least once a month, according to a TD Ameritrade study.
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