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Buying a Home Young is the Key to Building Wealth

Buying a Home Young is the Key to Building Wealth

Buying a Home Young is the Key to Building Wealth | MyKCM

Homeowners who purchase their homes before the age of 35 are better prepared for retirement at age 60, according to a new Urban Institute study. The organization surveyed adults who turned 60 or 61 between 2003 and 2015 for their data set.

“Today’s older adults became homeowners at a younger age than today’s young adults. Half the older adults in our sample bought their first house when they were between 25 and 34 years old, and 27 percent bought their first home before age 25.”

The full breakdown is in the chart below:

Buying a Home Young is the Key to Building Wealth | MyKCM

The study goes on to show the impact of purchasing a home at an early age. Those who purchased their first homes when they were younger than 25 had an average of $10,000 left on their mortgage at age 60. The 50% of buyers who purchased in their mid-twenties and early-30s had close to $50,000 left, but traditionally had purchased more expensive homes.

Buying a Home Young is the Key to Building Wealth | MyKCM

Many housing experts are concerned that the homeownership rate amongst millennials, those 18-34, is much lower than previous generations in the same age range. The study results gave a great reason why this generation should consider buying instead of signing a renewal on their lease:

“As people age into retirement, they rely more heavily on their wealth rather than their income to support their lifestyles. Today’s young adults are failing to build housing wealth, the largest single source of wealth, at the same rate as previous generations.

While people make the choice to own or rent that suits them at a given point, maybe more young adults should take into account the long-term consequences of renting when homeownership is an option.”

Bottom Line

If you are one of the many young people debating whether buying a home this year is right for you, let’s get together to discuss your options!

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Christa Ross and Keeping Current Matters, Inc. do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Christa Ross and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

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By |2019-01-22T10:54:52+00:00January 29th, 2019|Blog Post - Buying|0 Comments

About the Author:

Christa Ross is a REALTOR with RE/MAX Select Realty. Based in the East End office in Pittsburgh’s East Liberty neighborhood, she works in the city of Pittsburgh and the Eastern and Northern Suburbs. As a Certified Residential Specialist (CRS) with 10 years of experience, she is among the top 3% of real estate agents in the country and a RE/MAX Hall of Fame Member. Whether you are all about a trendy condo in the city, a grand old home on the Northside, a recent renovation in Lawrenceville or a sweet suburban address, if you are buying or selling a home, or relocating to the Pittsburgh area, she is the real estate agent you should be working with. Real Estate Experience That Moves You. Get in touch by calling 724-933-6300x214 or direct at 724-779-1437.