Why investing in a home in your 20s makes sense

  • 0
  • September 1, 2016

MANILA, Philippines – Owning a home while you’re young, really? Yes, it’s not impossible. And it actually makes sense if you think about it.


As a 20-something, you have your aspirations in life—being on top of your career, traveling, pursuing your passion, getting married, earning money, and more. But you’d realize that money is quite essential to achieve these and unfortunately, you don’t have enough of it yet.

Making an investment, like owning a home, can help you get closer to your life goals. So, here are more than a couple of reasons why this type of investment could work for you even if you think you’re still too young for it.

Your expenses are getting more demanding.


Prices don’t look like they’ll get lower anytime soon, and as you grow older you’ll have more things to spend on. And perhaps you’re feeling that you’re not earning enough now, especially if you have to share some household expenses with your family and support your personal needs at the same time.

So, how can owning a property help you and your cash flow?

One, consider rent-to-own schemes if you’re planning to move near your office. This way, your money doesn’t just go the landlord but also builds up an investment for you. You can also choose to rent out a condo, apartment or house you’re planning to buy to acquire extra cash every month.

Time is your friend if you invest as early as you can. You see, property value increases over time. That means if you start owning a home now when you’re still in your 20s and sell it 30 years after, for instance, you’ll see that the resale value will have increased by then.

And if you’ll rent out that property, you can use your earnings from there to adequately cover your expenses now and even beef up your savings or retirement fund.

It teaches you to be more responsible.

Making a big investment like buying a house while you’re still young gives you not just a sense of fulfillment but also a sense of responsibility. Owning a property involves maintenance, legal documents, taxes and monthly payments, among many other things.

These will somehow force you to take charge and be disciplined enough in taking care of an asset and managing your finances. A property you can call your own also gives you a motivation to regularly save up.

But while homeownership in your 20s makes sense, keep in mind that it’s still a big investment to make. Be sure to save up for the down payment, compare prices and properties, weigh pros and cons, and do a lot of research to understand what you’re getting into. It’s also wise to ask for your parents’ guidance or seek professional help from financial advisors.

While saving up, you can start checking out your options. Take a look at what real estate developers are offering these days.

Finally, don’t get discouraged when it comes to preparing your finances. It takes time before you can generate a considerable amount to put down for a property. Just take it easy. Be a wise spender and don’t stop building your home fund until you reach your goal. Remember that buying a home in your 20s isn’t impossible.