The short answer is that there is no strict age requirement for buying a home. As long as you’re of legal age, have the financial capacity, and weighed the risks against the potential benefits, nothing should stop you from calling up a real estate agent Colorado and looking for a home to buy.
At what age do most people start purchasing their homes?
A 2018 Bankrate study found that the majority of Americans believed that 28 was the best age to buy a home. However, the median age for homebuyers in the United States is 32, according to the National Association of Realtors (NAR).
Putting money down on a home is no small feat when you’re just 28 – most Americans have just finished, or are about to finish, paying off their student loans at this age.
But it’s not unrealistic. Maurie Backman of The Motley Fool advises aspiring homeowners to temporarily move back in with their parents and live rent-free for about two years while putting more of their earnings towards a savings account.
She also recommends getting another job on the side to supplement your income.
However, Backman cautions against diving into homeownership too soon – the costs of monthly mortgage payments, home maintenance, and property taxes can be overwhelming, so some buyers are better off waiting until they’re more financially prepared.
When should I buy a home?
Young or old, you’re likely ready to buy a home if you have the following requirements down pat:
- You’re mentally and emotionally ready to face the responsibilities of owning a home
- You have a good credit score and are likely to get approved for a mortgage
- You can afford to make monthly mortgage payments and other home-related expenses
- You’re financially protected against the risks of homeownership, such as emergency repairs or home depreciation in a weak market
- You plan to hold on to the property long enough to recoup the closing costs – buyers are generally advised to stay in the home for at least five to six years to be able to recover some of their transaction-related expenses
The benefits of buying a home early
Upon examining data from more than 18,000 participants dating back to 1968, Value Penguin found that Americans who bought their between 25 and 34 years enjoy the greatest benefits in home equity upon entering their 60s, with a median value of $148,625.
Meanwhile, those who bought their first home later in life had less housing wealth as they grew older – Value Penguin speculates that this is due to home values appreciating over time.
The benefits of buying a home later in life
Not ready to buy a home? Don’t fret – waiting to purchase your first property comes with advantages. As you age, you get a better idea of what kind of home you want. This kind of certainty allows you to be more decisive when searching for homes.
And as you enter your high-earning years, you’ll have the means to buy a home with little to no compromises.
Buying a home later in life also lets you use your hard-earned money for other things, such as opening your own business or traveling abroad.
Ready to take the plunge? Northwest Colorado offers an amazing selection of homes for sale. King Homes and Land Realty will show you all your options in the market. Contact us today to get the latest listings.