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This Is How A Millennial Can Buy A Home Before Their 30s

This Is How A Millennial Can Buy A Home Before Their 30s

They say millennials can’t afford a house. They say you have to rent. They say you have to be married to own a home. What they don’t say is, there is another way!

You can buy your own place, even if you’re a debt-burdened millennial and even if you are single. Because 20-somethings are seen as mostly unable to secure a good paying job, the general opinion is they can’t afford to buy a home. Public opinion seems to go with the flow as there are many articles on how millennials are changing the real estate market. While it’s true that many millennials value the laid back, carefree lifestyle that comes with renting, there is a way to own your own home before turning 30. You just have to stick to a set of strong rules and make sure nothing changes your mind. I know this because I’ve seen it. My cousin is lucky enough to have her own place and she’s 5 years younger than I am, earning only $38,000 per year!

1. Figure out what you want

The first step is to figure out what you want. Most millennials are fleeing towards NY or some other high-end city, in the pursuit of better jobs. This is great, but do you really want to live in that city? Would you prefer being closer to home? Or, maybe you’d like to find a whole new place to live.

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Figuring out what you want is an important step in the quest for home ownership, as owning means having to stick to a place for a long period of time, like 5-10 years.

At the same time, make sure the job you have is the job you want. If you’re planning to change careers, put your plans of owning a home on pause until you’ve decided what your perfect job is.

2. Pay attention to your credit

Most millennials have low or no credit score, which makes it difficult to get a mortgage. Before you apply for a mortgage you need to take care of this issue. If you have no credit, open a credit card and set a low limit, then pay it each month to build your score. If you already have a credit card keep the balances below 30% or below the credit limit. This will increase your credit score.

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3. Learn how much you can afford

Getting a mortgage means you’ll have extra expenses and before you take the step you have to be able to afford it. Spend time with an online mortgage calculator and check how different monthly payments affect your interest rate and down payment. Also, research different types of mortgages and loans to make sure you are making the best choice.

When you know how much can you spend and which program is right for you, get your mortgage pre-approved. You can do this online and it will help you secure the mortgage loan.

4. Research down payment assistance and other helpers

There are many great down payment assistance programs out there that can be supportive when buying your first house. However, you need to research them to the core! There will be a lot of paperwork to fill out but in the end, you might walk away with a good amount of money. For example, in Atlanta, you can get around $15,000 in down payment assistance with the right qualifiers.

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Research other options that might help you, such as a reverse mortgage, lowering your PMI in the future or challenging the tax assessment. All these can help you lower your payments in the future, or even right after you purchase the house. The key is to be informed!

5. Start saving for the down payment

The next step is saving as much as possible. My cousin set her initial target at 30% of her already small revenue, then modified it to 25% and managed to stick with the plan, mostly. You will be amazed at how much money we spend on useless things and how much we can save! If you can stack some cash from a side activity like a blog, a skill or a hobby, do it! Save for at least a year before you apply for the mortgage. This money will become your down payment and the more you have, the better.

6. Research the house

Another critical step of buying a house at a young age is researching the building before making the purchase. Visit the house you want multiple times, at different times of the day, attend community meetings, and familiarize yourself with the neighborhood.

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Never buy a house you can’t afford, this will result in failure. Research the taxes on the house you want to buy, along with any fees or liens, and do your calculations before making the final step. Good, in-depth research ensures you won’t end up with an unwanted surprise after the buy.

Don’t aim for the highest limits of your approved mortgage. If you can find a house you love for less money, go for it!

Featured photo credit: Unsplash via unsplash.com

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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