Despite the financial setbacks and challenges the global pandemic has brought upon all of us, it has also emphasized and further improved the younger generation’s financial competencies, adding economic resilience and increasing financial responsibility to their skillset. As a result, we see a definite shift toward a long-term approach to personal finance, especially when it comes to investment portfolios, the rise of cryptocurrency, and dipping their toes in the real estate market.
However, in contrast to the improved financial attitude and increased financial awareness, the majority of 20-year-olds are taking things too fast and forgetting their most impressive leverage; time. And because many fail to acknowledge that they have more than enough time to take things slow and build their assets, we’re seeing an unhealthy amount of young adults succumbing to the effects of home-buying anxiety and, subsequently, buyer’s remorse. So, to help address this issue head-on, we’ll be going over the reasons why it’s better to take things slow.
Buying A Home Is Not An Everyday Purchase
Most importantly, we need to understand that there’s a significant difference between your everyday purchases and buying a home. It’s not your typical walk inside the store and picks something out from the aisles ordeal; it’s a complicated process that requires a large amount of cash that you won’t typically spend going out for groceries. And, while it may seem obvious, many people don’t treat it as much and fall victim to the false pretense that it’s easy.
- Mortgage Payments: While a home will undoubtedly be your biggest financial asset, the mortgage that comes with it is also the most substantial financial obligation that you’ll need to pay every single month. And that translates into tying down most of your savings into one object when you’ve yet to build a steady cash flow or might even need the financial flexibility where liquid cash is necessary.
- Personal Commitment To A Home: Remember, you’re still young, full of life, and have yet to experience many things you don’t know you want. And, buying a home at an early age goes against the grain of exploration and self-discovery because it requires a lot of commitment. Yes, it’s great that you’re interested in real estate investing and personal finance at an early age, but there’s also wisdom that comes from experiences you risk not getting the opportunity to immerse in.
You Have More Than Enough Time, So Be Patient
With those reasons laid out, we strongly recommend using the time to your advantage and practice the virtue of patience. Right now, the world is going through a lot of complex events and is facing a cloud of uncertainty in the foreseeable future. Therefore, it’s best to keep your cards in check while not necessarily putting them at play. Stay your hand, and you might have the opportunity for a royal flush.
#1 We’re Still In The Middle Of A Pandemic
Number one, we can’t forget to acknowledge the fact that we’re still in the middle of a pandemic, and while new variants and strains are reported to be not as serious, we can’t count ourselves out of the problem yet. Most of the world is still recovering from the economic shock of 2020, and while we’ve made major progress since then, some parts of the world are going into new lockdowns and strict curfew measures.
- Don’t Fall For The Panic-Buying: Most people saw the collapse brought about by the global pandemic as an opportunity to ride new real estate market opportunities, and while some have been able to turn a huge profit, most people are textbook examples of panic-buying. Everyone’s still in the frenzy of buying because they fear missing out on good opportunities when, in fact, all the bidding and multiple offers only drive the prices up.
#2 Build Your Nest Egg
Number two, instead of rushing in to get a downpayment for that one house that looked like a great offer, we recommend using this opportunity to build your nest egg and diversify your portfolio as you take into account all the listings in your area. Most affordable and newly-built properties are selling super fast that you face a lot of competition trying to get your hands on what you want. So, don’t put it against yourself that you couldn’t land a big score.
- Take Care Of Your Debt: If you haven’t trimmed down your debt all the way to zero, there’s no better time than now to take care of all your debt. You will be a lot more flexible and less nervous knowing that you don’t have any present financial obligations consistently accruing over time, which means you won’t have any unneeded thoughts clouding your decision-making.
#3 Consult A Real Estate Agent
Number three, if you really must buy a house but are under the mercy of market volatility, it’s always better to put your trust in a professional. Getting in contact with real estate agents in Leeds to the sunny beaches of California will get you direct access to their current listings and multiple offers where you get first priority. Plus, you won’t have to put in all the work of surveying and comparing the average prices because this will all be taken care of by them. In fact, they might even interest you in upcoming housing spaces and projects if you’re willing to wait and bide your time.
Patience Is The Most Important Virtue In Home-Buying
Overall, we still stand by our advice to practice patience and wait for the right opportunity to strike. There’s still much you can learn from and experience in years to come, and at the young age of 20, there’s a lot left for you to explore first. So, take your time and put home-buying on the slow-burn first before you make any big financial decisions.