Buying a house in your twenties – can you afford it
24th May, 2018
Your early twenties can be a stressful, monumental time when big decisions start to weigh you down.
Gone are the days when buying your first home fresh out of your teens was a common reality. Now, we live in a world where we are all marrying later, having kids later, and moving out later.
Technically there is no right or wrong, and life should be travelled at your own pace. But, there is still the general perception that if you own your own home in your early twenties you must be doing pretty well.
On the flipside, owning a home during this early stage of life can be a burden if you are not ready.
So here are seven things to consider if you plan on buying a home in your twenties:
1. Learn how to sacrifice when saving for a deposit
Owning your own home will have you appreciating the little things in life literally. You will need to be okay with making sacrifices, especially when saving for a deposit. Like swapping that smashed avo with baked beans, and that quinoa for two minute noodles. Grab every bargain you can and never overlook the sales aisle at Coles.
2. Get comfortable with having debt
It’s important to come to terms with your mortgage and don’t let it slip to the back of your mind. The debt you have accrued will be scary, but remember you have around 30 years to pay it off. Make it your home, relax in the meantime and remind yourself of the long term benefits of owning property.
3. Welcome your inner handy man
If you aren’t the best at fixing things, prepare to be surprised. You will have no choice but to start learning how to DIY. Not only will it save you money, but you will find that owning your own home will have you actually caring about the space you live in. You pay for it so keep it in good shape, there is nothing more rewarding.
4. Become an overnight property expert
A lot of research goes in to buying your first home, so it is expected that new home owners become overnight experts on house prices. Be ready to find yourself in the midst of every heated property debate you find. You will also find it hard to keep your nose out of how the rest of your suburb is doing, like how much sale prices in your area have gone up or down.
To find out more about your suburb, visit reiwa.com’s suburb profiles.
5. The letterbox becomes a no-go zone
Say goodbye to pen pal and love letters and hello to bills, rates and more bills. Emptying your letterbox will start to become a chore. The best thing to do is be on top of it, organise your bills as much as you can so you aren’t left with a huge pile of overdue stamps. Alternatively, you can make your billing purely electronic now, so save yourself the hassle!
6. Think about the long haul
It can be hard to stay enthusiastic and mentally in charge when you are paying a 30 year mortgage. But making this commitment now, means you don’t have to do it later on in life. So remind yourself of the massive achievement you’ve accomplished and take it day by day.
7. Stay social, but you may have to cut down
It’s safe to say before buying a house you would’ve already come to terms with potentially having to cut down on social outings. You might become the new hermit crab of the group, but remember to keep that balance in your life and don’t isolate yourself completely.
Make the most of having your own home, have friends over rather than going out all the time. Use what you can to your advantage while still making sure you try and save as much money as you can.