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When you reach your early twenties your mindset will change. You will no longer want to be living with your parents in their home, and you will want to spread your wings and really make an impact on the world.

 

As a millennial, the idea of buying a home in your twenties might seem like a pipe dream. The way that house prices are going these days it is a wonder that we manage to afford anything at all. Living in this world can be an expensive affair, but it is not impossible by any means to take that leap into homeownership. Here is everything you need to know about buying a home in your twenties and all the things you need to consider.

 

Buy For Long Term


It is incredibly important that you take the time to truly think about your life before you buy a home. Decide exactly where you see yourself being in the next few years and think about everything you want to experience. This is the prime of your life, so it is the perfect time to experiment with new careers and go traveling in different parts of the world. You are young, free and able to do anything with your life, do you want to be stuck in one place for all this time? If you are single and free, think about renting an apartment for the meantime while you have fun and travel, and when you are ready to settle down, move into a home and start a new chapter in your life. Make sure you are ready for the commitment of a home before you commit.

 

Buy To Enhance Your Life


When it comes to buying a home you need to make sure you are buying for the right reasons. Don’t buy a house just because you think that is what you have to do, you need to buy a home because it will bring a positive change in your life. If you decide to invest in a home you need to make sure it is a home you see yourself growing up in, one which you see yourself having a future in for at least 5 years.

 

Don’t Let Fancy Features Sway Your Decision

 

Let’s say you have two options for a home. One of them is in the perfect location, has pretty much everything you want but is a little bit small. The second one is expensive, has a ton of great features but is far away from transport links. Which one would you choose? There is only one of these homes which you should consider and that is the first one. The second one might have some attractive features but it is over budget and will make your morning commute much harder. Always go with a relatively safe option to start off with and then you can spend the next few years saving up for a bigger and fancier place.

 

Stick To Your Budget

 

If you aren’t sure what your budget for buying a home is, you need to apply online for a mortgage in principle with a few different lenders. You will have to input your income information and your financial commitments such as a car or a child, and it will give you a house price to aim for. Don’t go above this price for your first home because it will put you in a difficult position with your bills, and you won’t have any additional income left if something goes wrong in your home or in your life. It is hard enough to get on the property ladder, to begin with, so make sure you don’t take a big risk.

 

You Can Go For A Lower Deposit

 

It is ideal for you to go for a 20% deposit on a new home because it will lower the monthly payments and allow you to go for a shorter term. However, if you won’t be able to afford a 20% deposit you can apply for lower. When you meet with a mortgage advisor you can tell them how much you have at the moment and they will be able to give you advice and options for what kind of mortgage you will pay. It is something which lenders are doing to make it easier for young people to get on the ladder and become homeowners, so take advantage if you need to.

 

Have extra money aside

 

The mortgage itself is not the only payment you have to consider when buying a new house. You will have to pay the solicitor fees, home buyer’s report, land tax and stamp duty on the home before you move in. After you move in you will be buying new furniture and appliances and possibly even decorating. Make sure you have extra money saved up for this occasion and keep saving right up until the day you move into your new home. This will enable you to buy everything you need and to start a new chapter of your life.

 

Compare mortgages


Getting a mortgage isn’t as clear-cut as you would think, and there is not a standard rate you will have to pay at every lender. Make sure you take some time to compare different mortgages because you will find that certain lenders will have a lower interest rate or a lower monthly fee. It may work out better for you to go for a lower fee for a longer stretch of time, and this can be beneficial to your future. Take your time and ask for advice if you aren’t sure which to choose.

 

Be willing to walk away

 

Even if you think you have spotted your dream house at the viewing, you always have to go into negotiations with the willingness to walk away if the price is too high for you. Agree with your partner or a family member upon a maximum price which you are willing to offer, and always try your hand at going $5000 below the price. If they don’t agree, match their price and they should accept you. Never spend more than you are able just because you like the house.

 

Buy furniture in advance

 

The last thing you want to do during the first week of owning a house is scrambling around to buy yourself an oven or a bed to sleep in. Make sure that you start buying items for your new home from the moment the offer goes through. If like most people, you don’t have space in the home you are living in to store the new items, you can store everything in a storage unit for a few months while you wait for the deal to go through. This means that as soon as you pick up the keys you can fully move into your home and start living your new life.

 

Make moving easier

 

If you have a lot of stuff to move, you will want to start packing a few weeks before you get the keys. To make the job of moving a little easier on yourself, pack things room by room and label the room and item on each box. This means that when you bring everything into the new house you can put the box straight into the correct room ready to be unboxed. It will be much less stressful and will allow you to enjoy moving day so much more.

 

Now that you know all of this, it is time to make that move into homeownership and enjoy the new chapter in your life.

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6 comments on “Everything Millennials Should Know Before Buying A Home”

  1. While we already own our home, we’re still in the market since we’re planning to move. I totally agree with these tips and find them quite informative. In fact, we should have walked away on this current house as it wasn’t as good of a deal as we initially thought.

  2. Buy for long term is a GREAT piece of advice. We bought our 2 bedroom condo 13 years ago, with the intent of staying 5 years TOPS. Well like I said, 13 years ago…..the market dropped, I got pregnant, I got pregnant again, my husband switched jobs. If someone had given us this advice, we would have bought the 3 bedroom townhouse we were also looking at, which would have been barely $100 more a month.

  3. These are all excellent tips! My husband and I are in our fourth home together but most recently moved eight months ago. Every time we buy a new home we have a long list of things we wanted to do differently than the last. This most recent move experience was fantastic and I love the home we are currently in (but I said that about all our homes!).

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