Navigating Home Finance In Your Twenties

Buying a home is one of the largest financial investments you will ever make. It could take a decade or more to pay off your mortgage, and owning a home comes with a whole host of responsibilities that can’t compare with living in an apartment.

So how do you decide when it’s time to settle down? Is it better to start early in life and get it over with, or could it be more affordable to keep paying rent? There are so many factors to consider, and the consequences of making the wrong choice could be heavy.

Renting vs. Owning

Renting an apartment can be expensive, especially in a heavily-populated location like a big city. You could spend thousands of dollars on rent over the time you live in your apartment, and in the end, you won’t be any closer to owning it.

Paying a mortgage is, in some ways, like paying rent. The difference is that it comes with an end date – at a certain point, you will stop making payments and own the house.


If you choose to buy a house, you could rent out a room. This will lessen the financial burden on you, while also giving someone a place to live. If you have enough space to rent out, your renters could end up making your monthly mortgage payments for you.

Bubble Trouble?

One question on many buyers’ minds is whether or not the housing market is recovered. After the housing crash in 2008, many people have been left reluctant to buy, knowing the value of their property could decline unexpectedly.

While the housing market is in recovery, the San Diego Tribune reports that household incomes have not. Young people looking to buy a house may need to save up for as much as eighteen years to afford even a moderately-priced home.

For these reasons, if you are a young person looking to make an investment with a home, it may be better to wait until you have an established income.

Settling Down

If you are young and looking to buy a home, first consider whether you are ready to settle down. This means more than being ready to start a family – when you are young, your career may still be changing.

If you’re living in an apartment and your job asks you to move, it’s relatively easy – find a subletter and get a new place. A mortgage ties you down, and if the value of the property drops, you could end up in debt or unable to sell without a loss you can’t afford.

Find Your Dream Home

Ultimately, this isn’t a decision that can be rushed. Don’t buy a home because you want a house – buy it because it’s the perfect place for you and your family. There are many responsibilities to having a home, so if you think it will make your life easier to get away from your noisy apartment complex, think again.

Don’t get stuck in a property you don’t like because you’re rushing the decision. Take your time and find a place you love. After all, if everything goes right, you’ll be there for a long time.