We’ve all heard the dire news about millennial homeownership; according to some, it’s virtually impossible. If you’re convinced the time is right to become a homeowner, ignore the naysayers. These tips from Five Star Storage in Van Alstyne, TX, will help you prepare to own your first home.
Should you really become a homeowner right now?
Most people can benefit financially from buying a home. You’ll build equity instead of paying a landlord’s mortgage, and house payments are less expensive than renting in many parts of the country. However, take a deep look at your finances and lifestyle before diving in. If you have a steady, substantial income and no credit-card debt, buying while you’re young can help build wealth.
But if you can’t furnish your home without going into debt or make a 20-percent down payment without help, you might not be ready to buy. And if you want to do some serious traveling before settling down, it may be better to indulge your dreams now and put off buying so you can enjoy millennial homeownership with no regrets.
How can I come up with a down payment?
If you live in the rare community where renting is less expensive than buying, use a mortgage calculator to estimate monthly payments on a house in your desired neighborhood. Set aside the extra money in a savings account every month for six months to see if the additional dent in your budget is sustainable. If so, great! It’s time to start squirreling away money for your down payment.
- Consider opening a separate savings account at an online bank offering a somewhat higher interest rate.
- Set up automatic deposits; since this isn’t your main bank, you won’t have the temptation of transferring money to checking.
- A side hustle—freelancing or delivering food—is an excellent way to accumulate money quickly but may not be practical for everyone.
- Selling anything you’re not using online, at consignment shops or via local online sales apps requires no commitment and can be quite profitable.
- If you’re not already a cord-cutter, ditching cable for streaming options can significantly trim your monthly entertainment budget.
If you don’t have the standard 20% down payment, that’s ok; you can put down less than 20% with a conventional loan, though you do have to pay Private Mortgage Insurance (PMI) until you have 20% invested.
Don’t Let Space Stand in the Way of Homeownership
From examining your budget to deciding what’s important to you right now, making sure you’re truly ready to become a homeowner is essential. Once you’ve taken the plunge into millennial homeownership, you may need self storage for your seasonal items and those bulky but necessary belongings hogging your space. Reserve a unit online, or contact Five Store Storage in Van Alstyne, TX, today for answers to your questions.