Buying A Home Before Age 30
Do you have a goal to buy a home before 30? On this week’s episode we will discuss some of the things to think about before you buy and some statistics on young buyers. Check out the full episode and if you have questions about how to get started with Homeowner Prep, be sure to reach out to us or drop your question in the comments.
What You’ll Learn from this Episode:
- Why Do You Want To Buy?
- How Student Loans Are Holding Buyers Back
- What’s Making Buyers Start Later In Life
- And much more!
00:00 So You Want To Buy A Home Before Turning 30?
00:32 Welcome To The Homeowner Prep Podcast
01:02 Why Do You Want To Buy?
02:00 Young Buyers Were Taking Advantage of Rates
02:57 Are You Planning To Move Anytime Soon?
03:24 Student Loan Debt Holding Young Buyers Back
05:11 Buy A Home As Soon As Possible
06:02 Getting Started With Homeowner Prep
06:34 Connect With Us On Social Media
“There are a lot of young people who have student loan debt and is really holding them back from buying their first home.”Eric Hellon
Full Episode Transcript:
So you wanna buy your first home before you turn 30? That’s a great goal. But on today’s episode, we’re gonna talk about a few things you need to think about before you get the keys to your first home.
Welcome to The Homeowner Prep Podcast, where every week we educate and encourage aspiring homeowners to help them buy their first home faster. If you aspire to own a home, you’re in the right place, so enjoy. Do us a favor and leave a review, a rating, and be sure to subscribe. Now, let’s get to this week’s episode.
Hello and welcome to another episode of the Homeowner Prep Podcast. I’m your host, Eric Hellon and on today’s episode we’re gonna talk about a goal that I hear quite often from folks and that goal is, “Hey, I wanna buy my first home before I turn 30.”
That’s a great goal to have. I am all about buying your first home as soon as you can and getting your foot in the door when it comes to owning real estate, but I want you to think about a couple things before you make that decision.
The first thing I want you to think about is why do you wanna buy a house before you turn 30? You know, where’s that goal coming from? Was it something that you grew up seeing? Was it something that you didn’t see? Is it somebody else’s goal for your life? Really settle on where that’s coming from so that you can decide on if it’s truly a passion and a goal of your own.
I’ve seen far too many times where people have a goal or some pressure that’s put on them from other people. Maybe it’s their parents or you know, an uncle or grandparent, whatever the case may be, but it’s really not their goal, and so I really want you to dive deep, discover where that goal is coming from.
What is that “Why”? Because you’re gonna need it if you’re going through the home buying process. The home buying process is not easy, and when those times come where you’re facing challenges or obstacles, you need to be able to rely on that “why” and why you got started in the first place.
Recently, we’ve seen young people really take advantage of low interest rates. From 2016 to 2022 people under 44 were the number one buyer in the market, so I’m glad that people were out taking advantage of those low rates. But just because rates are a little bit higher now doesn’t mean that you shouldn’t still be out with a strong goal to buy your first home before you turn 30.
When it comes to our real estate market and what we’re seeing, we’re seeing a lot of young people getting priced out of the market, meaning home prices are accelerating so fast that they can’t keep up and they’re barely keeping up with rent. So when it comes to buying a house, yes you do wanna buy it as soon as possible, but you wanna make sure that your ducks are in a row. You wanna make sure that your debt to income ratios look really good as far as the income and stability of your job and paying off bad debt in order to really build in some cushion for when you become a first time home buyer.
Another thing to think about is, are you going to be in your location for a long period of time? Now, when you buy a home, as a first time home buyer, you’re buying a owner occupied property. So you do have to live in that home for at least a year before you rent it out. So that’s something to consider if you’re thinking about making a move, moving out of the city or out of the state, then maybe you need to wait until you’re ready to make that decision before you decide to buy your first home.
As I mentioned, millennials under the age of 44 were very strong in the market up until 2022, and we saw some rate changes happen, but still, when you look back, statistically young home buyers are really having a hard time getting started.
One of the main reasons for that is because of student loan debt. Student loan debt is a heavy burden on your debt to income ratio, and it’s keeping a lot of first time home buyers out of the market. Keep in mind that, yes, if you have student loan debt, you wanna see how that factors into your total DTI, your debt to income ratio. Before you decide to make that decision to buy a home, talk to a lender, really figure out if it’s the right time, what those payments would look like, and if you can qualify based on your income.
I know that student loan debt and student loan forgiveness has been heavily politicized, but when it comes to working with first time home buyers, we see it every day. There are a lot of young people who have student loan debt and is really holding them back from buying their first home.
Even if you feel like student loan debt shouldn’t be forgiven, I always come back with a question, would you rather have your neighbors all around you, renters or owners? Because chances are with the current student loan crisis that we’re having, they’re all gonna be renters, and we all know that renters don’t take care of property quite like homeowners do. So keep that in mind when you’re thinking about student loan forgiveness and the idea of that concept, what it would do to our economy, not only to help young people buy their first home, but to spend more money in the economy now that they’re homeowners.
So overall, our wealth as a nation could go up with the freedom of being able to release that student loan payment and being able to buy a house, I definitely encourage you, if you are looking to buy a home, buy a home as soon as possible. We’ve seen alarming statistics recently where, you know, the average first time home buyer is now 36 years old and back in the 80’s, that was actually the average age of a repeat buyer.
So you know, people are buying their first home a lot later in life. You know, maybe it’s some decisions that they’re making as far as, you know, being ready or moving out of their parents’ house, but overall, we really think that the pricing of homes and the interest rates of homes are holding first time home buyers back.
So when it comes to trying to decide if you’re truly ready and if you can buy your first home before you turn 30, if that’s truly a goal of yours, then you really need to sit down and create a plan with a lender, with an agent, and figure out how you can make that happen.
If you think you might be ready to get started with the home buying process, I definitely will encourage you to reach out to Homeowner Prep. We’re a free program. We provide one-on-one financial coaching, and we can help you put a plan together to see if you’re truly ready.
You can get started with Homeowner Prep by texting the word START to 619-848-3700 or you can visit us on our website at www.homeownerprep.com/start. From there, you can set up an initial consultation with us and get started in the home buying process.
If you just have a general question or a scenario that you wanna run by us, feel free to reach out to us on any of the social media channels. We tend to get the majority of our questions on our Instagram account @HomeownerPrep.
I truly hope you got some value from today’s episode, and I look forward to providing you with some more great content on the next episode, until then… be blessed.
If you’ve enjoyed this show and got some great value from it, please be sure to rate and review and if you’re checking it out on YouTube, please be sure to subscribe. That really does help us to continue the show and bring in some great guests to help you on your home buying journey.
Connect with Homeowner Prep:
Want to buy a house, but not sure how to get started? Visit our Start Page and we can help you, no matter where you’re at on your homeownership journey. If you enjoyed this episode of The Homeowner Prep Podcast, be sure to subscribe on iTunes and leave a review. It means so much to hear your feedback and we’d love for you to help us spread the word!