Almost everyone has rented a home at some point in their life. Most people have no choice but to have to rent once they have finished school. Commonly debts are high and income is low. Most younger people are focused on just finding a good job and haven’t even thought of putting together a finance plan.
Whatever type a plan you put together, whether it’s a building plan, travel plan or financial plan they all have starting points and an ending point or final goal. In almost every financial plan the ultimate goal is retirement or the ability to choose when you can retire.
In the end everyone’s plan should include home ownership. The faster you attain homeownership the better and easier your end goal should be to achieve. Currently in today’s housing market in most areas the cost to rent is higher than the monthly cost to own a home. In most areas the cost is almost 30% more per month to rent than it is to own.
Other factors to look out for and plan around are age, health, and the ability to find good employment over age 50. As ugly as that sounds there is some real truth to those factors. A younger strong person may feel healthy or even invincible, but throwing out a back at work or a sudden illness could throw a person’s plan of course fast. The fact is no one plans for failure we just fail to plan. Reaching retirement age and still renting, one could find themselves living in or below poverty level.
Buying a home with the monthly expenses being below the rental market expense is an opportunity that we should not be missing out on. Buying a home between the age of 25 and 50 years of age could allow one to build enough equity to be in a position to do a reverse mortgage at retirement and eliminate a lot of their monthly living expenses. This could be a crucial component to one’s retirement plan especially if a person’s health or income is less than expected at that point in their life.
Sitting with a good loan originator who is will to take the time to help you plan and structure your debt in order to attain home ownership could prove to be time well spent. Once people understand what it take to get into their own home most people can achieve this in less than six months and many other under one years’ time.
Even if retirement feels like light years away for you missing out on a great capital or a good equity position could factor in you having to spend a greater amount of money later down the road for your ultimate dream home. In other words, waiting and not planning today could cost you thousands of dollars later on. Get your facts, ask questions now, make you plan and we will see you at a happy closing table.