The business landscape has really changed a lot today. The people who occupy the top positions in companies are getting younger and younger. Ship captains can now be as young as 35. Bank managers can be as young as 30. General managers of technology firms can even be as young as 25!
Of course, the wealthy have also become a lot younger. A young professional now has the money to buy himself a car and a whole house. If you happen to be one of these, there is one question that you really have to address: is it really wise to buy a property just because you have the money? In this article, we attempt to determine when is the best time to buy your own house.
When you want to rent it out
A house is going to be a very big investment. Under normal circumstances, you will have to spend at least the next fifteen years of your life earning the money to pay the mortgage. Because of this, it’s really important that you know exactly what you’re buying the home for.
If you are going to buy it to live in it, it’s best that you take a closer look at your lifestyle and the goals that you set, which we talk a lot more about in the second point. But if you’re sure that you are buying it as an investment (e.g. renting it out, flipping), then your age or current state of affairs shouldn’t matter that much, especially now that you can just hire property managers to take care of it for you.
Buying a home to flip it later or rent it out long-term is a business decision, and it will be best if it’s going to be influenced by your understanding of real estate market trends. What type of residential property has the greatest potential? What sector of the market do you target? These are just some of the questions that you should tackle. And the answers that you give will have a significant bearing on the direction that you’re going to take. Targeting students, for example, might result in lower-cost short-term rentals.
When you know exactly where you want to put down roots
Even if the young are getting richer today, their outlook and attitudes toward life are still very much the same. You are still in a period of your life that is marked by exploration, and your access to more funds only serves to add more fuel to your explorative pursuits. Owning a house, which of course has to be located somewhere, will only limit the options that you have. And it also makes you less flexible. What happens when you have a house in Phoenix and you’ve been offered the job of your dreams, but it’s going to be based in Miami? Thinking about what to do with the property will only complicate the decision-making process.
In addition to that, maintaining a house requires a lot of time and money. There will be repairs here and there. Then there are the pains of taxation (oh, you haven’t heard about this? That’s exactly the point.). There might also be a garden to tend. According to Wikilawn, small yards are not really difficult to maintain, but they still demand time and effort nonetheless.
Because of all that, we don’t really advise that you buy your own home unless you are absolutely sure that you want to settle and thrive in a specific locality.