Is it possible to own real estate in your 20s?
My boyfriend Ryan and I have talked about our desire to buy property for as long as I can remember. We just celebrated our 7-year anniversary and I think we’ve talked about homeownership the entire 7 years. As we grow older (and get closer to 30), I can’t help but wonder if it’s even possible to own real estate in your 20s – specifically in desirable places like coastal Southern California.
As of now, I have zero interest in owning anything out of state – dealing with tenants and property management from afar seems daunting and like a pain. But as we all know, prices in our area are soaring and with high interest rates, owning either my primary residence or an investment property doesn’t seem all that beneficial if rents aren’t increasing as quickly as home prices. Why take out a loan that will result in a $5,000+ monthly mortgage payment when our rent is under $3,000?
A sizable down payment is almost a necessity with the current rates. Sure there’s FHA loans, but only putting 3.5% down doesn’t help my situation unless I can afford a large monthly mortgage plus the insurance, property taxes, HOA fees, maintenance, etc. I’d rather wait until I have a larger sum to put down.
So how are people actually buying homes at a young age?
I have a friend who received a grant that gave him $50k towards his down payment, so he ended up buying a fixer and thus had more cash to put towards renovations. The program is no longer accepting applicants, but see here for more info.
In a recent survey, 60% of Gen Z and 57% of millennials who purchased homes said they couldn’t have done it without family support.
As “starter homes” are becoming increasingly expensive, younger buyers are opting for condos or the less desirable areas. The cheapest single family home listed for sale in Carlsbad at the time of this writing is $925,000. If you go out to Escondido, you can get a SFR for less than $600,000!
All in all, it’s still possible to purchase real estate in your 20s; it just requires extra assistance, widening the search, settling for what might not be your “dream home,” and careful planning!
I’m sure we will share if I do buy something before I hit 30 – stay tuned!
