Putting your hard earned dollars in real estate is always a great idea. Experts consider buying property one of the best ways to make money off your money. But investing in real estate is especially important for people in their 20s and 30s. Here are a just few reasons why it’s critical to start down this path while you’re young.
An Early Start
The greatest benefit to home ownership is building equity. Say you were 25 years old in 2000, and you just bought your first house – a fixer-upper – for $150,000. The next 17 years could allow you to pay off a large percentage of your mortgage while completing home improvement projects along the way. If you’re looking to sell in 2017? You’ve got a property worth substantially more than it was at time of purchase. The best part? That money doesn’t belong to the bank – it belongs to you!
Low Loan Rates
Entering the real estate market in the wake of 2008’s housing crash has been a blessing for first time homebuyers. With historically low interest rates and friendly tax credits, taking advantage now can save you thousands in the long run.
Renting Pays Mortgage
Buying a place in Fishers is great for a number of reasons. Living in a family-friendly community ripe with commerce, restaurants and easy highway access has its perks. Many have flocked to Fishers for work over the last couple decades and by all accounts will continue to do so. If you fit into this category, buying a home and finding roommates allows you to live for cheap while you pay off your house. And when the time comes to move out, the rent money you collect can turn your starter home into rental property.
Creating as sense financial discipline happens quickly when you’re on the hook for a mortgage. Often times the reputation of young people includes a perception of being irresponsible with their money. Becoming a homeowner squashes bad habits quickly and has many long-term financial benefits. The biggest, though, is that you develop a mindset of fiscal responsibility at a young age.