Would you agree that buying a house if you can swing it is a good idea financially?

Question

My family owns tons of real estate in certain part of town. I'd like to buy this one house near the others but others have said I'm too young. I'm 21 and could have the house paid off within a year. I have 2 more years of college here and then possibly grad school @ the same school. I hate having to pay rent every month when it could be going towards a house payment. What do you think?

*The house is immaculate. My dad remodeled the entire house (ie new: fixtures, roof, bathroom, carpet, central heating and air and appliances).

Answer 1

If you can afford the house at 21, I say buy it. You are far better off than most 21 year olds I know. Owning property is always a good idea.

Answer 2

As long as you are confident that the house is sound structurally and there are no hidden surprises such as mold/termites etc :)O then most definitely purchasing rather than renting is the most sound thing you can do, particularly if at 21 you are confident that you will have it paid off in a year.

As long as you always have at least 3 months advance money in the bank at all times that covers all of your expenses...just in case the unforeseen happens (and it does), you should be fine.

A wise idea as well is if you can take out disability or injury insurance if you are mortgaging...if through your father in that he holds the deed until its paid for, then perhaps you don't need this, but if going through a normal lender scenario...getting this is far more beneficial than not getting it...if you are unable to make payments for a few months due to injury, illness etc., then your mortgage is paid for you.

It sounds however, as though you don't have to worry financially and that's great...wise investments and always knowing that tomorrow could swing suddenly to hardship is the best way to deal with things.

Good luck with the purchase, enjoy ownership

Answer 3

I bought my first house at 18, and it was perhaps the best investment I ever made. I have since sold that property, and have upgraded into more comfortable living situations. The younger generation looks at a house purchase as something that should be done when they are older. After they have a family and a career in place for years. If you feel you can accomodate the payments without having to put alot of other things on hold, you should do it. Just think of the equity you could start builing if you purchased today.

Answer 4

Never too young to own Real Estate. If you have budgeted for all the expenses involved, and it pencils out whether you rent or keep it for appreciation or live in it, yes.

If there were to be potential expenses you could not meet without renting it, they it might be a toss up.

If it were clear you could NOT support the payments should the local market turn soft, then perhaps not.

You must make the analysis, for you will take the pain or the gain.

Have your parents or a competent person they recommend help you pencil out the costs, and then you game out the various scenarios yourself.

Good Luck

Answer 5

As an investment property, now is not a good time to be buying. Over all prices are high, and there's a 6 month inventory of houses just sitting on the market. Wait until prices come down, then buy.

Age has nothing to do with it, but you're probably not doing all the research you should be doing before buying if you're asking for advice on here.

And a house is not necessarily the best way to invest your money. Just ask Donald Trump.

Answer 6

I was always told that you should "Buy the house you cant afford" as long as you have a good credit line. If you're financially aware enough to make sure you're getting a good mortgage with a good rate then you should do it. Even if you're going to move in a few years or so a home is an investment, prices just go up. Paying rent is just like throwing your money away. If you can afford payments you should go for it.

Answer 7

Yes, home ownership is the single best investment you can make. It's the last best tax shelter for most of us. Think of it this way, if you borrow money at 4% interest you will be saving over 1% in tax refund, that is to say by borrowing the money on a house you can spend the 1% any way you would like! Generaly 1% of the cost of a house is a pertty sizeble saving.

Answer 8

depends on how long you intend to be there.

I wish I could have bought my house in college but I soon realized I wanted to move out to a better locale.

It makes sense if you believe you want to live there for more than 7 years. Sure you save on rent. But you have to pay interest, property tax, maintenance, homeowner's insurance, and the mortgage deduction savings is minimal since you won't be making too much dough as a student.


It's good to have a house for many reasons. However, housing prices may crash and you might get stuck with the tab.

proceed with caution.

Answer 9

A house is a good investment. You have to make sure that you have the time/money available not just to buy the house, but for upkeep if something breaks and for taxes as well. Plus, a good thing to think about is whether or not you want to stay in the area--if you decide you want to leave, selling the house could make that impossible.

Answer 10

We bought our first house at age 21 and 23 years. It made it possible to keep getting bigger and better homes every 5 years...we call it our 5 year plan. Remember the kid who sailed solo around the world at age 16? It saves an enormous amount of rent money. Go for it. YOu are not too young....