Back in the old days, okay more like ten years ago, people waited until their early 30s to buy their first home. They would graduate college, get a job and then focus on moving up the career ladder. Of course, most people would find time for a break where they would explore the world, find love and maybe even start a family.
By the time their 30s rolled around, they were ready to settle down. Buying that first home was a symbol of this. But things are different in 2019. More people in their 20s are buying real estate. It is an interesting trend and there are a few reasons why people aren’t waiting until the big 3-0 to purchase their first property.
See more: Easy ways millennials can save money when buying their first condo
3 reasons people in their 20s are buying homes
City living
There are more jobs in Metro Manila and usually these are better paying ones. Fresh college graduates prefer to stay in and around the city to secure these career opportunities instead of returning to their hometown. With dorms no longer an option, they need someplace to stay.
Renting will always be an option, but millennials are savvy. They understand it makes more sense to make a mortgage payment on a property they own instead of paying rent that cannot be recuperated. Of course, doing this usually requires some personal sacrifices such as cutting down on travel or eating out. However the long-term gain makes it worthwhile.
Freedom
It’s still tradition that for people in their 20s to move back into the family home after graduation, but the times are a changing. A growing number of people in their 20s feel that to be too restrictive and no longer return home after graduation. One way to justify this decision is by buying a house. While parents may still feel hurt by the choice to not move back in with them, they are proud of their child for making such a responsible decision.
Financial planning
Despite what some people try to claim, those in their 20s are financially responsible and see the big picture when it comes to their money. Not all mind you, but most. Anyway, starting a mortgage earlier in life frees up finances in one’s 30s or 40s. For people in their 20s, they may value this as it means they can secure their future now, enjoy life with their family and maybe even spoil their kids and grandkids.