Homebuying Tips for Every Stage of Life
Homebuying
Tips for Every Stage of Life
Jordan Rosenfeld
Tue, September 27,wh
2022 at 9:31 AM·6 min read
For many people,
buying a home is the biggest purchase they'll ever make because it is both a
financial and an emotional decision, said Kevin Bazazzadeh, real estate
investor and founder of Brilliant Day Homes. Different ages and stages of life may
bring different considerations when buying a house, from the location and the
property size to your budget and financing options.
"Buyers need to
look at the next five or ten years of their life and what they have hopes for
and how a particular home will supplement that," Melanie Dawkins, realtor
with kwElite Real Estate.
In Your 20s
Find a Location That
Meets Your Needs
Younger buyers and
those through their 40s need to think about what they want to be near when it
comes to restaurants or entertainment and nightlife, Dawkins said.
"Location is just as important as what's inside their house and how it
will serve their life."
Build Wealth Through
Real Estate
Andy Piedra, real
estate broker with Veteran USAF, suggests that the 20s are an excellent time to
learn how to leverage real estate as a wealth-building tool. "I think
anyone who can swing it should own the home in which they live, but to buy it
wisely. This isn't MTV Cribs. If single, we like to teach buyers to purchase
with the intent to turn the property into an asset, right away."
The way to do this, he
said, is by renting out the other rooms to colleagues, friends or anyone you're
willing to live with. "That rate they pay, in many cases, will cover most
if not all the monthly costs of owning the home."
For young families,
it's not as feasible to rent out rooms, Piedra said. But they can still buy
with the intent to turn it into an asset eventually. "In some cases, if
they go on vacations, they can rent the home out as a short term vacation
rental. Or they may be able to convert a basement into a separate rentable
space. Or, most logically, they buy now to enjoy the home and then when they
move, they rent the home out for cash flow, which is very doable when factoring
in rental rate increases over time and/or the ability to refinance the home for
a lower payment down the road."
Traditional
Multifamily Homes
The traditional
multifamily home or flexible spaces are great options for first-time
homebuyers, said Ralph DiBugnara,
president of Home Qualified and
senior vice president at Cardinal Financial.
"[There are]
plenty of program through FHA, Fannie & Freddie Mac offer that will
continue to offer low down payment options as little as 3%. Also there are more
down payment assistance programs or grants available than almost ever before.
These approved programs can be found on agency websites such as Fanniemae.com
or Freddiemac.com."
Gen Z Wants
Flexibility
In general, DiBugnara
said, Gen Zers in a position to buy are looking for more creative approaches to
homeownership. "Gen Z want flexible homes or places to live without long
term commitments and the possibility to earn money. Gen Z has been one of the
most active buyers and participants in the short term or Airbnb market. These
types of residences afford them the flexibility to not have to live somewhere
permanently but also enjoy the home while still earning on it."
In Your 30s and 40s
Think About Family
Younger buyers should
take into consideration if they intend to have a family, or if they intend to
work a lot and be gone, Dawkins said. "Maybe they don't want to be in
charge of mowing a lawn and a townhouse is more important."
Young couples and
newly-weds may be more interested in a starter home they can afford now and
grow into over time, said Kevin Bazazzadeh, real estate investor and
founder of Brilliant Day
Homes. "Meanwhile, families with school-aged children may
be looking for a home with more bedrooms, workspaces, and a larger yard. Some
may even prefer a house with a pool and barbeque area to keep the kids
entertained during the summer." If you're a young, first-time homebuyer,
you should know a few things before you buy your first home, said Rinal Patel,
a licensed realtor and co-founder of We Buy Philly Home.
"For example, you'll need to save up enough money for a down payment, and
you'll need to budget for monthly expenses like mortgage payments, property
taxes, and homeowner's insurance. Many people overlook the additional costs of
homeownership, like maintenance and repairs, but these costs can add up over
time. Make sure you're prepared for all the homeownership expenses before you
make your purchase."
In Your 50s and 60s
If you're close to
retirement, Patel said "You'll want to think about how long you plan on
staying in the home, and whether or not you'll need to make any modifications
to accommodate your needs as you age. Maybe you want to downsize to a smaller
home that's easier to take care of, or maybe you want to move to a home that's
closer to family or friends. Whatever your plans are, it's important to consider
your retirement plans when buying a home."
Additionally, those
nearing retirement may be looking for a retirement community or a home that
suits their needs better, Bazazzadeh said. "So, downsizing or finding a
home with features like single-level living or a first-floor master bedroom may
be a priority. This way, the house is easier to maintain as well."
60s and Beyond
Dawkins said that
generally people in their 60s and older are looking for something that has one
level, as stairs can pose a safety hazard. "Older buyers need to look at
things like how a bathroom may be modified if they need it or having a laundry
room and their primary bedroom on the same floor so they don't risk a fall down
the stairs."
Retired folks may also
have more money available to buy a home than someone who is just starting their
family, Patel said. "Someone who is retired may have been able to save up
money over their working years, while someone who is just starting their family
may not have had as much time or money to save up."
For buyers in their
60s and older, Dawkins said that "If they can stay in their own home and
maintain their lifestyle by being active, then that's a great healthy move for
them."
Dawkins also said that
older folks need to think about how much landscaping they can handle outside
and if they cannot do it themselves, do they want the extra cost of hiring
someone to maintain that for them.
Patel concludes, "At any age, buying a
home is a big decision, and it's essential to do your research before making a
purchase. Talk to family and friends, consult with a real estate agent, and
take your time to find the right home for you. With a bit of planning, you can
find the perfect home for your needs, no matter what stage you are in
life."
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