When you are in your twenties, you likely don't have a ton of money. However, some young professionals manage to move into lucrative careers or start their own businesses and suddenly have enough money to consider purchasing a house, rather than spending a ton of money on rent. Here are some tips for making sure that purchasing a house in your twenties is the right financial move for you.
1. Don't Buy if You're Planning on Going Back to School
The first thing that you should consider is whether or not you are planning on going back to school to pursue a more advanced degree. There are two main reasons for this. The first is that school is expensive and you might need to move in order to go to a school that has a specialized major that you want or has offered you enough financial aid or scholarships to make it affordable. You need to be able to stay put for a few years in order to make your house purchase pay off. The second reason why you need to consider whether or not you are going to back to school is because you might not be able to make mortgage payments on top of paying back student loans when you finish school. Don't take on more debt than you can handle, especially if it might take you several months to find a job.
2. Buy a Home That Can Accommodate a Family, Even if You Don't Have One Yet
If you buy a house, you're going to want to stay in it for a long time. This is important to consider because if you stay in it for several years, you might find yourself starting a family. It probably isn't worth buying a home that can't accommodate at least one extra person in one extra bedroom, so it's a good plan to pay the extra money for a larger house so that you won't have to move should you decide to start a family and suffer a loss.
3. Wait if You Can't Afford to Live in Your Preferred Area
Finally, if you can't afford to live a reasonable distance from your job or in a cool neighborhood that's easy to navigate, don't buy. Keep renting until you are able to afford in your preferred area or else you might be miserable.
For more information, talk to local real estate agents. They will be able to assist you with the decision-making process.