5 Benefits of Buying a Condo While You’re Young
“Millennials aren’t Buying Homes”
“Millennial Homeownership is on the Rise”
The truth is… you’ll see conflicting headlines all over the internet. BUT, we’re not here to bore you with statistics about whether or not the 75 million millennials in this country are or aren’t buying condos and homes. Instead, we want to tell you the honest reasons for why they SHOULD.
Money, Money, Money Money, Monnneeeyyyy!
If you’re truly looking to MAKE money early on in your real estate journey and don’t mind sharing your space with others, being a landlord might be for you. Once you purchase the unit, you can actually rent the individual rooms out to your friends. In most cases, your mortgage will be significantly less than the cost of rent and it’s possible that your friend’s rent would cover the entire cost of the mortgage and then some! In this scenario, you would either be making money or at least breaking even.
The Future is Now
The very first condo you ever buy MIGHT not be your dream condo - and that’s okay. Chances are you will live there for a while and eventually rent it out to Gen Z or Gen Alpha tenants. This gives you the opportunity to have someone else pay your mortgage and over time, earn passive rental income.
Even if you’re unsure of exactly where you want to end up permanently, (as many millennials are) buying in our market makes a lot of sense - Especially since we're so close to New York City. If you spontaneously decide you want to teach English in China or be an au pair in London, you can easily rent out your unit. Just be sure to set aside some extra cash for unexpected repairs because you’re #Adulting now.
2,4,6,8 All the Condos Appreciate!
It’s pretty much a given that most condos in our area not only hold their value but also increase steadily over time. One of the benefits of buying young is that you lock in the current price of your unit and then watch its value rise over the years. Sure, there might be some waves over the years but by the time you’re ready to sell or retire, your condo could be worth A LOT more than you paid for it if you bought while you were young.
Real Life Pinterest Board
When you buy at a young age, it gives you the opportunity to customize your space and really settle in a lot more than you could while renting. As a millennial, you have most likely lived in a few cramped dorm rooms with your belongings in plastic tubs and in apartments with your mattress on the floor because you never felt 100% settled enough to buy a bed frame. It’s a great feeling knowing you won’t have to move again for a while and that you can really make that new space your own. Want to remodel your kitchen? Go for it. When you’re the landlord, you make the rules.
Stairway to Wealth
Let’s face it. You will need to live SOMEWHERE for the rest of your life. So it’s a good idea to start building equity young so that you can own your condo free and clear someday as you prepare for retirement. You could easily spend half a million dollars or more renting for the next 30 years of your life and have nothing to show for it. Subsequently, it’s no surprise that 8 out of every 10 millionaires own real estate and that renters ultimately make landlords rich. If you have a stable income and want to make the best investment possible for your future, buying a condo is a no-brainer in building wealth.
If you’re pumped after reading this but nervous about saving for a down payment, don’t worry. Even though it’s recommended to put down 20%, some types of loans only require anywhere between 3-5% down. We know that buying young isn’t for everyone, but we want to guide you to make the most informed decision and the one that’s best for you. If you have any questions at all about homeownership, we are happy to answer them!