Studying is often said to be that part of your life when you can plan best for the future. Whether you’re thinking of your future career, or even considering investment strategies – you can never be too early with those as small investments might need years to produce generous, regular income – it’s fair to say that your college years are all about taking your first steps into adulthood. It might be tricky and challenging at times, but ultimately you know that establishing your strategy as early as possible is the best way to reach your destination in future. That’s precisely why some students decide to consider the opportunity to buy a property before their graduation. According to the principle, the earlier you start, the sooner you’ll be done, there’s an undeniable logic to entering the real estate market early. After all, many would argue that it’s the only way to climb the property ladder and buy the house of your dreams at an age when you can still enjoy it. But does the logic hold when confronted with the reality of college finances? There are exceptions, but ultimately the short answer is no. You’re best to delay a little before reaching for the first step of the property ladder.
There’s too much going on when you’re studying
Unless you’ve come across a generous inheritance, or your parents are entirely paying for your studies, it’s fair to say that you’ll be stressed about finances during your college years. In fact, don’t think that you’re an isolated case. 70% of college students struggle financial anxiety. In other words now is probably not the best time to consider buying your first home. Indeed, handling your tuition fees is a difficult task, especially as it is for many students the first real-life encounter with finance management. And for many, the idea that the repayment period for your tuition fees lies as much in the present time than in the future leads to indescribable fears of the unknown. Ultimately; the main question is as simple as: How can I afford my studies? But as everyday anxiety, this can lead to students neglecting their studies or dropping out because they can’t see a way of repaying their debts yet. Additionally, the struggle about the cost of education in the long)term is only one side of the story. 30% of students are very worried about making ends meet each month. In short, if you don’t have any financial allowance at the moment, it’s best to focus your energy on finishing your studies instead of looking at properties.
You’ve got priorities when you graduate
The graduation period may come as a relief, especially if you’ve passed, but it doesn’t mean it’s a quiet and peaceful time. In fact, you need to be quick and efficient to make sure that you’re ready to enter the work market as soon as possible. For a start, if you are considering applying for a full-time position soon after your graduation, you need to ensure that you’ve got your papers in order. From social security card to degree, you need to store everything safely so that you can display it if needed during the interview process. Ultimately, you need to be quick as you’ll have only 6 months after your graduation date before you have to start making repayment for your student loan. The better prepared you are, the easier it is to manage your loan. You need to sort this out first before you can think of buying a home.
First job but no first home
Landing your first job marks the beginning of budget flexibility. The money you earn – for the first time as a professionally trained employee – can be accumulated to be used in future. In reality, you’ll have to use it wisely at first, as you need to establish yourself, pay your income taxes, repay your student loan and also manage future purchases. In other words, during this time, you’ll be saving little amounts as you sort out your rental, your car, your professional wardrobe and even your everyday gadget. It’s no surprise that most young adults prefer to rent, as this removes the responsibility of property maintenance. Additionally, a lot of young adults take this time to get to know themselves and postpone any investment in the future.
Serious relationship, serious home
Finally, there’s a time in your life when your professional and sentimental expectations are positive. You’ve got a job that pays well. You’ve met someone you love, and you’ve been together for a few years. For most adults, they hit the stability stage between 30 and 40 year-old. At this point, you want to get married and buy a property together. If you’ve been looking at your options via a loan calculator, you’ll find that bringing two salaries to finance a property gives you a better chance to find the right mortgage for your needs. Ultimately, now is the best time to buy a home because you can share repayments.
Experienced professional with a career
Skip a few years, and you’re around 50, or over. You’re still a dynamic employee, but naturally, the sign on your door now says you’re a highly skilled manager. Your children have left for university, so you’re looking for investment strategies to make the most of your money. Property investments, and consequently buying to either sell or let, can be extremely advantageous. You could enjoy a regular income as a landlord.
Later years and retirement
When you retire, you might be faced with a series of dilemmas. Firstly, if you haven’t planned for your retirement years, you might find yourself feeling depressed and rather bored when you have no office to go to in the morning. But, you will be looking at other ways to manage your lifestyle. A lot of American pensioners choose to downsize their home as a result, especially as they don’t need extra bedrooms anymore. You can save a significant amount of money in energy, maintenance and furniture in the process. Now isn’t a time to purchase a large home, but you can add new properties to rent.
When is the right time to buy your first home? The answer is, ultimately, when you can afford it. For most college students, this means waiting until they can share the mortgage with a partner