With real estate, your age does not determine if you will make a mistake or not during the home buying process. The determining factor is if you are prepared with a good real estate agent that will ensure that you do not make these too common mistakes.
Curious as to the what each generation’s mistake is? Read below to find out so that you will not make the same mistake.
20’s: Picking the Wrong Type of Mortgage
Being younger typically means that you do not have the same amount of money saved up as someone a little bit older; this is not something to be too concerned about though because there are great options available for first-time homebuyers. Because you might not have lots saved, this might lead you to believe that an adjustable-rate mortgage is the only mortgage option for you; but there are other mortgage options out there for you that you should at least take a look at. Many young homebuyers are tempted by an adjustable-rate mortgage, a mortgage that has interest rates that change over time, due to the low introductory rates but as a homebuyer it is a great idea to look at all available mortgages. The federal government has programs such as FHA loans and VA loans and HUD has the Good Neighbor Next Door program which offers home buying assistance for those in law enforcement and teachers. Then there are state-sponsored homebuyer grants, so check with your state to see what your individual state has to offer.
30’s: Not Thinking About the Future
With the average age for an American to get married these days being 27 for women and 29 for men, as a country we are not necessarily considering a future family at the beginning of our 30’s. So while you may be young and single, or newly married, and looking at a one bedroom condo in a high-rise you might want to be thinking about getting something a bit more practical for your future. So, if you are planning on having a family or even a dog, it might be a wise idea to think about if the one-bedroom will fit with your lifestyle in a few years. By thinking about your future when you are making a purchase it will allow you to not have to be forced to sell when you decide to get a dog that needs a yard or have a family. This is not only an issue that young buyers face but an issue that all ages need to think about; what does your future hold and does the home you are looking at cover any and all changes that might happen in your life.
40’s-50’s: Overestimating your Budget
This is another mistake that all generations make, but tends to be an issue with these two age groups the most. Normally, at this age you have more money and this is the problem; you might be thinking just because you are bringing in a larger income currently that you can afford much more but have you made a budget for yourself lately? Creating a budget every few years is very important for your financial clarity; having a budget is not just something that you should have when you are more strapped for cash but a budget is a great tool for your entire life.
60’s: Falling in Love with that Vacation Home
Let’s say that you have lived your entire life in Michigan enduring those cold winters and now that you are retired you take a vacation down to Florida and fall in love with that quintessential beachside community. You decide that you cannot handle one more winter in Michigan and so you decide to buy a two bedroom condo and sell your home back in Michigan. You are on cloud nine until you start to think about the large life changing decision you just made. Homebuyers sometimes forget to think about the whole picture of falling in love with a location that they might not be too familiar with; did you think about the weather year round or the location well? While you might be getting ride of the cold winters you might just be gaining hurricanes and a rowdy Spring Break every year. Before you make any real estate decision make certain you know exactly what you are getting yourself into which is where having a location real estate agent will benefit you since they will know everything that will aid in your decision to buy or not.
Have you made any of these mistakes over the years of home buying?