Learn how girls and young women are prioritizing homeownership by age 30 and get expert advice on navigating the real estate market and more!
We’re back with another exciting issue of the SimplVest Newsletter! This time, we’re diving into a topic that has been gaining momentum: girls and young women’s aspirations for homeownership by age 30.
In this edition, we’ll
- 📊dive into recent surveys,
- 🥼share expert insights,
- 🏠and provide practical advice for aspiring homeowners like you.
So, let’s get started and explore the strategies, challenges, and key considerations for girls and young women who dream of homeownership by age 30.
Girls and Young Women: Aiming for Homeownership
Recent surveys conducted both in the United Kingdom and the United States shed light on the aspirations of girls and young women regarding homeownership.
According to the Girlguiding’s Girls’ Attitudes Survey 2023, an impressive 52% of young women between the ages of 7 and 21 strive to purchase a house by the time they turn 30. In comparison, getting married or earning money ranked lower in their priorities.
This sentiment is echoed by American teens surveyed in the 2022 Junior Achievement and Fannie Mae Youth Homeownership survey, where an astounding 85% believe that owning a home is an integral part of “the good life.”
The desire for homeownership is strong, but how can you navigate the challenges today’s real estate market poses? Let’s explore the key components of buying a first home and discover practical ways to prepare for this significant milestone.
Key Components to Buying Your First Home
1. Down Payment: A Hurdle to Overcome
Saving for a down payment is often the biggest obstacle for aspiring homeowners. While the standard expectation is a 20% down payment, rest assured that you can get by with much less. In fact, many homebuyers successfully purchase their first homes with a down payment as low as 6% or 7%.
Certified financial planner Kamila Elliott suggests that starting a part-time job and diligently setting aside money can be a great way for high school students to jumpstart their savings. Additionally, exploring the potential use of retirement accounts, such as a Roth IRA, can provide valuable benefits for first-time homebuyers.
2. Credit Score: Your Financial Reflection
When applying for a mortgage, banks will assess your credit score, which reflects how well you manage debt. The higher your credit score, the better interest rate you may qualify for on your loan. To maintain a high credit score, managing your credit card responsibly and making timely payments in full is important.
3. Income: A Competitive Advantage
Having a stable and sufficient income can make you a more competitive buyer in the real estate market. Lenders evaluate your debt-to-income ratio to determine the amount of mortgage debt you can comfortably handle. If you lack an employment history or rely on bonuses or commissions, having a parent or family member co-sign the mortgage can provide the necessary stability.
Responsibilities and Considerations of Homeownership
While aspiring homeowners should be excited about achieving their dreams, it’s equally important to understand the responsibilities and considerations that come with owning a home. Beyond the mortgage, property taxes, insurance costs, and maintenance expenses are higher for houses than apartments.
It’s essential for young adults to anticipate these financial obligations and adjust their budgets accordingly. Melissa Cohn, regional vice president of William Raveis Mortgage, suggests clearly understanding how homeownership works and being prepared for its unique challenges.
Your First Home: A Stepping Stone to a Brighter Future
It’s important to remember that your first home might not fulfill all your dreams and desires. Instead, it should be viewed as a stepping stone towards building financial stability and a brighter future. With time on their side, this new generation of aspiring homeowners has the potential to navigate the current real estate market and overcome any obstacles they may face.
Remember, homeownership is within reach, and by focusing on financial literacy, diligent savings, responsible credit management, and understanding the responsibilities that come with owning a home, girls and young women can confidently pursue their dreams.
Stay tuned for our next issue, where we’ll delve into another exciting topic and provide valuable insights for your financial journey.
Wishing you all the best on your path to homeownership!
The SimplVest Team
