DIFFERENCE BETWEEN HOME SHOPPING IN YOUR 20’S, 30’S AND 40’S

Thinking about buying a home when you’re in your twenties will probably look a lot different than if you are in your thirties or forties.

That’s because our priorities change over time as we find ourselves in different stages of our lives.

Things like savings and children will have an impact on the types of properties we look for and where we choose to live. Whether you need to start saving for a deposit or upgrade to a bigger home, there are several factors that need to be taken into consideration.

IN YOUR 20’S

When you first hit your twenties, you’ve probably only just started working and are at the very beginning stages of your home buying journey.

Like most people at this age, you probably don’t have enough money saved up to buy a home yet, so it’s time to develop a plan.

You need to work out how much money you will need, how long it will take to save that amount, and how much you’ll have to put aside each pay…

You should also check your credit report, as it’s best to find out early on whether or not there’s an issue that will need to be addressed.

Things like mixed credit files happen all the time, where your credit file gets mixed up with someone else’s in the credit-reporting agency’s database.

……Avoid dealing with these stresses late in the game by getting a free credit report.

When it comes to saving, it’s about much more than saving for a deposit, as there are several other costs you will need to take into consideration. This includes upfront costs such as stamp duty, home inspections, and cleaning costs, as well as ongoing expenses such as council rates, household bills, and home insurance.

Take these costs into consideration when working out how much money you will need to set aside.

You may find that a new construction will be a better option than an older home as there will be fewer maintenance costs.

Having an understanding of how much money you will need may also help you be a little more realistic about the type of home you can buy.

While most of us would love to buy a big house in the nicest neighborhood, we won’t all be able to afford that at this stage in our lives.

….So, think about the things you really need from your first home.

Once you’ve worked out how much you can afford, it’s time to look at different loan options.

Would you benefit from a fixed-rate mortgage, or would a variable-rate be better for you at this stage? How long you plan on keeping the property will play a part in this.

Complete a pre approval early to determine what types of loans you would be able to get….

The more you understand about what options are at your disposal, the better prepared you will be. Doing things like comparing interest rates will help you find the best low rate for you.

For instance, according to Lendi the lowest rate for the Westpac Bank was 3.59% (based on the last 12 months); having access to this type of information will help you better formulate your plan.

IN YOUR 30’S

Once you get to your thirties, you may find that you need to plan for a bigger home to accommodate the needs of your growing family. It’s a priority for many people this age, but there are more factors to consider than just the size of a property.

The location will probably matter more at this stage, as you will need to think about things like schools if you’ve got children, as well as proximity to employment hubs and transportation links.

Of course, just because you’ve hit thirty doesn’t mean you have to upgrade.

You need to think carefully about your lifestyle and whether or not you really need to move.

You want to be sure you’re doing it for the right reasons, so you don’t end up with a home you struggle to afford.

If you do end up upgrading, then you want the transition to be as smooth as possible. Try to time the sale of your first home with the purchase of your next home. You may want to seek out help from the experts, as a real estate agent can help you negotiate the right timing and take a lot of the stress out of the move.

It’s at this stage that you may be tempted to purchase a fixer-upper over a new build.

If you do end up doing any work to your home, then you will need to think carefully about your budget. The value of the area can sometimes play a more significant role in determining how much people will end up paying for a property; most buyers won’t be prepared to pay above the value of the area, so try not to overspend.

IN YOUR 40’S

When you are in your forties, it might be that your priorities will again change.

You may no longer need as big a house if you don’t have children or are about to hit the empty-nest phase, in which case downsizing might be a good option.

This would mean lower mortgage payments and less home maintenance costs, leaving you with more disposable income and the opportunity to save more money for your retirement.

If, on the other hand, you have younger children, then you may need to look at buying a larger home instead. What people need at this stage in life will vary from person to person, so think carefully about your needs, rather than what may usually be expected of someone of this age.

Many people find that this is also a good stage to pay off their mortgage as they are more established in their career and most of the major life expenses are behind them. Consider whether this may be a good option for you and don’t be afraid to consult a financial adviser as they can explain the implications of early payoff and whether or not it’s the best idea for you.

No matter how old you are, the most important thing to consider is your lifestyle and your needs.

……It varies from individual to the next so don’t get too caught up thinking about your age.

When in doubt, check in with the experts, as they will be able to provide you with invaluable advice to help you make the right decision based on your needs.


FIND MORE: https://realestateko.com/home-shopping-20s-30s-and-40s/


CC: lawyer , lalasticlala

CC: lawyer , lalasticlala

This is a good ride for wider audience...

Still worth a good read !

Cc:Lalasticlala , Lawyer