3 Steps Everyone Should Take if They Want to Own Real Estate by Age 30
The term “adulting” typically describes the time in life when people assume more responsibility, and find it time to start making grown-up decisions. This time may include becoming steady in one’s career or relationship, paying bills you didn’t realize existed, and even considering purchasing your first real estate property! As scary as it may sound, and as many doubts as you may have about affording it, yes it is possible to own real estate by the age of 30! In order to do so smartly, it is crucial to do research and educate yourself.
If you are someone under 30 looking to purchase real estate, amidst the high priced real estate market, and potential student loans from college, you can still buy your first home or rental property! However, it is important to follow these three vital steps when starting the home-buying process. First things first, create a goal for your property. Next, quantify what your down payment will need to be. And lastly, make sure you do ample research on the real estate market.
Establishing your property goal price is important because it will allow you to determine what you can currently comfortably afford and what should be left for your dream house goals in the future. It’s important to decide if you’re looking for a residential property or a commercial property, and establishing whether it will be a place you reside or an income property. Location is also an important aspect of your property goal. Currently, the median value for a home in the United States is $226,800, according to Zillow, but that can vary greatly based on location and the size of the property you are looking to purchase. Decide how much space you need, and how much you’re looking for before searching for a property. It is also imperative to consider the costs of utilities that may be associated with your property if you plan to live in it. Heating and cooling a smaller home is much cheaper and more efficient than heating and cooling one that has more space than you need!
Figuring out what your down payment will be is the next crucial step in the process. If you quantify how much money you are looking to put down, based on your established price goal, you will be able to calculate how much you need to save. If you know exactly what age you’d like to purchase a property by, decide how much money you will need to save each month before then to efficiently accumulate your down payment goal. This process of saving can occur much quicker if you are purchasing the property with another owner’s assistance!
The last step is to do your research on the real estate market itself in your desired area. This is imperative when purchasing a property. For example, researching the school district for the town you’re looking to move into can be vital to your search. Although a better school district may mean higher taxes, this may be something important to consider if you plan on starting a family or eventually reselling your home. Taking note of fixer-uppers on the market is also an important step in purchasing a property. Buying a fixer-upper is often overlooked, but it can be a great way to save money when purchasing your first property. If you’re deciding to go down the route of a fixer-upper, make sure you create a budget that incorporates both the price of the home and the renovations. Overall, these are three steps that young aspiring property owners should take to ensure that they can achieve their goal by the age of 30. With the proper planning and knowledge, your dream property by 30 is definitely attainable!