For many people, to buy a house is the biggest purchase they will ever make because it is both a financial and an emotional decision, said Kevin Bazazzadeh, real estate investor and founder of Shining Day Houses. Different ages and life stages can bring different considerations when buying a home, from the location and size of the property to your budget and financing options.
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“Buyers have to look at the next five or ten years of their life and what they hope for and how a particular home will complement that,” Melanie Dawkins, real estate agent at kwElite Real Estate.
Here, the experts explore how buying a home is different at different ages.
in your twenties
Find a location that meets your needs
Younger shoppers and those in their 40s need to consider what they want to be close to in terms of dining, entertainment and nightlife, Dawkins said. “Location is just as important as what’s inside their home and how it will serve their life.”
Create wealth through real estate
Andy Piedra, real estate broker at Veteran USAF, suggests that the 20s are a great time to learn how to leverage real estate as a tool for building wealth. “I think anyone who can swing it should own the house they live in, but buy it wisely. It’s not MTV Cribs. If they’re single, we like to teach buyers to buy with the intention of transforming property into an asset, right away.”
The way to do that, he said, is to rent out the other rooms to colleagues, friends or anyone you’re willing to live with. “That rate they pay, in many cases, will cover most if not all of the monthly costs of owning the home.”
For young families, it’s not as feasible to rent rooms, Piedra said. But they can still buy with the intention of eventually turning it into an asset. “In some cases, if they are going on vacation, they may rent the house as a short-term vacation rental. Or they may be able to convert a basement into a separate rental space. Or, more logically , they buy now to enjoy the house, then when they move out, they rent the house for cash flow, which is very doable when you consider the increase in the rental rate over time and /or the ability to refinance the home for a lower payment down the road.”
Traditional multi-family houses
The traditional multi-family home or flex spaces are great options for first-time home buyers, said Ralph DiBugnarapresident of Qualified at home and Senior Vice President at Cardinal Financial.
“[There are] many programs through the FHA, Fannie & Freddie Mac offer that will continue to offer low payout options as low as 3%. Plus, there are more down payment assistance or grant programs available than almost ever before. These approved programs can be found on agency websites such as Fanniemae.com or Freddiemac.com.”
Gen Z wants flexibility
In general, DiBugnara said, Gen Zers in a position to buy are looking for more creative approaches to homeownership. “Gen Z wants flexible homes or places to live without long-term commitments and the opportunity to earn money. Gen Z has been one of the most active buyers and participants in the short-term market or Airbnb. These types of residences offer them the flexibility of not having to live somewhere permanently but also enjoying the house while continuing to earn a living.”
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In their thirties and forties
Think of the family
Young buyers should consider whether they plan to start a family or plan to work a lot and move on, Dawkins said. “Maybe they don’t want to be tasked with mowing a lawn and a townhouse is more important.”
Young couples and newlyweds may be more interested in a first home they can afford now and expand over time, said Kevin Bazazzadeh, real estate investor and founder of Shining Day Houses. “Meanwhile, families with school-aged children may be looking for a home with more bedrooms, workspaces, and a larger yard. Some may even prefer a home with a pool and outdoor space. barbecue to entertain the children during the summer.” If you’re a young first-time homebuyer, there are a few things you need to know before buying your first home, says Rinal Patel, licensed real estate agent and co-founder of We buy Philly Home. “For example, you’ll need to save enough money for a down payment, and you’ll need to budget for monthly expenses such as mortgage payments, property taxes, and home insurance. Many people overlook the additional costs of homeownership. homeownership, such as maintenance and repairs, but these costs can add up over time.Make sure you’re prepared for all homeownership expenses before you make your purchase.
In your 50s and 60s
If you’re about to retire, Patel said: “You’ll want to think about how long you plan to stay in the house and whether or not you’ll need to make changes to meet your needs as you get older. Maybe you want to move to a smaller house that is easier to maintain, or maybe you want to move to a house closer to your family or friends. consider your retirement plans when buying a home.
Additionally, those approaching retirement may be looking for a retirement community or home that better suits their needs, Bazazzadeh said. “So downsizing or finding a home with features like single-level living or a first-floor master bedroom can be a priority. That way the house is also easier to maintain.”
60s and beyond
Dawkins said that in general people in their 60s and older are looking for something that has only one level, as stairs can be a safety hazard. “Older buyers need to look at things like how a bathroom can be modified if they need to or have a laundry room and their master bedroom on the same floor so they don’t risk falling down the stairs.”
Retirees may also have more money to buy a home than someone who has just started a family, Patel said. “A retired person may have been able to save money during their working years, while someone who has just started a family may not have had as much time or money. to save money.”
For buyers in their 60s and older, Dawkins said “if they can stay in their own home and maintain their lifestyle by being active, then it’s a great healthy move for them.”
Dawkins also said seniors need to think about how much landscaping they can manage outside and if they can’t do it themselves, do they want the added cost of hiring someone to maintain it for them.
Patel concludes, “At any age, buying a home is a big decision, and researching before making a purchase is essential. Talk to family and friends, consult a realtor, and take your time finding the right home. for you. With a little planning, you can find the perfect home for your needs, no matter what stage in life you are at.
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This article originally appeared on GOBankingRates.com: Home buying advice for every stage of life
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