Home Buying Tips According to Your Age

Housing needs vary based on the age of a buyer. For example, a person in his 20’s will have different housing needs than someone in 30’s or 40’s. Young people will prefer a well-furnished property, good location and low maintenance living spaces. On the other hand, a person in his mid-40s will consider lifestyle, finance and renting options.

In this way, every age group has its own consideration and requirements when it comes to buy a home. Being a potential home buyer, you should look for the home which can go well with your lifestyle, budget and requirements for the years to come.

It will help you make a right decision which will be beneficial for you in a long run.

Here we have compiled expert’s tips on buying homes for every age group.

If You Are in Twenties:

Prepare a Plan:

Save yourself at least $5,000 to $10,000 to buy a home. You can opt for loan options like FHA loans with 3.5% down or traditional loan with 5% down. Meanwhile, look for a foreclosed home or the one put up on a short sale that comes with some equity.

Choose Your Loan Option Wisely:

Explore the loan options available to you. Evaluate them to come up with the best one. For example, you can opt for fixed rates loan option. However, go for an adjustable rate mortgage if you won’t keep the home for longer or want to sell your home before 10 years.

What about Credit Scores?

Even though your credit scores are good, it can be mixed up with someone else’s credit due to technical errors in the database. Therefore, check your credit report ahead of time to take a note of such issues.

Look for a New Home:

Prefer newly built home as it requires less maintenance or improvement.

If You are in Thirties:

Know Your Priorities:

Prefer quality of life, neighborhood, school district and easy access to transport and facilities.

Plan the Buying of Next Property Carefully:

Avoid buying and selling a home at the same time as it can be risky and full of hassles. Therefore, you should wait for a right time. Make sure you get a time to vacate your home after selling.

If You are in Forties:

Prefer Your Lifestyle Over Your Age:

Your real estate decision at this age should be based on your current needs. For example, if you have teenagers or children, consider a smaller home as you may have to lead an isolated life sooner or later.

Pay Off Your Home Mortgage As Soon As Possible:

Shorter term loans are a right decision for potential home buyers in their 40s and above. Try to pay your home off sooner and own it free and clear by the time you retire, especially when the cost of housing is a major expense for a person depending on a fixed income. However, you like to pay off the loan later as having a mortgage deliver you tax benefits. So, it makes sense to talk to your financial adviser to learn about the effects of early payoff. In some cases, paying your loan off too earlier may not be a right decision.

Think About Real Estate Investment:

Consider renting out your second home to ensure a fixed cash flow. You can use mobile apps or website to manage your rental property.

With these age-by-age home buying tips, you can end up with a right property to meet the needs associated with housing.