5 Reasons You Should Buy A House When You Are Young

You are 22 and just graduated from college with well paid, steady job… maybe you haven’t met the love of your life, but for sure you need to have a place of your own, away from your parents. 

At this point you start looking for a rent or considering the possibility of buying your own house. Buying a house is not an easy decision, not only because there may not be enough certainties, but also because investing in a house requires you to give the bank guarantees that maybe you do not have or do not think to have in order to be approved a mortgage. Considering to buy a house could be one of the best accomplishments in your life that eventually will benefit you. Here are five reasons why buying a house is one of the best choices you could make, especially if you are young.

1. Rent is expensive

A study released in October 2016 by online residential real estate site Trulia, showed that
buying a house can be up to 37.7% cheaper than renting, and this data went up by 0.5% from
the previous year due to the increase in inflation. In fact, rents have the tendency to increase
year by year, while payments for your mortgage are not affected, especially if a fixed rate has
been chosen.
 

2. Mortgage interest is tax deductible

Interest that you pay on your mortgage is tax deductible, within limits. If you’re married and
filing jointly, you can deduct all your interest payments on a maximum of $1 million.

 

3. Great interest rates on mortgages

Longforecast.com, a website specialized on long-range financial market forecasts, predicts
that mortgage rates will remain below 3.5 percent in 2017as an average. On the other hand,
Kiplinger, expects Fed to increase short-term rates but it will remain low and convenient.
Ohio with 3.92% on 30-year mortgages results as one of the lowest fixed mortgages rate in
the country and Ohio is one of the most affordable state with an average cost of $134,900.
 

4. House values are likely to go up over time

After the subprime mortgage crisis of 2008, house values went down; houses were sold for a
value well under their real, therefore people who invested back then today may have a
property worth even twice the amount spent. Since demand for houses is increasing, price
will go up, but buying now could benefit you securing a nice house for a decent price. The
earlier the better!

5. A house can be a great source of income

Buying a house for a good price and that doesn’t need too much work to be fixed can be a
great source of income. Renting out a property, even if bought with the help of a mortgage,
can ensure you entries bigger than your mortgage monthly payment.
 

Cleveland Housing Market

It is one of the most affordable in the country with and average cost of$75,000 per house and as of January 2017, the average rent for an apartment within the city borders is $987. The most expensive areas to rent are Downtown,University District and Ohio City and according to City-Data.com46% of residents are homeowners, also the most expensive neighborhoods for buying a house are Tremont and Edgewater ($135,000).
 

10 Best Cleveland Suburbs for Young Professionals

Movoto.com, a website specialized in real estate, ranked ten Cleveland suburbs that young professionals in the area are likely to prefer after Downtown. The criteria used was the percentage of resident in the 22-29 years old range, professional opportunity, and living cost.
1. Willoughby
2. Lakewood
3. Painesville
4. Berea
5. Medina
6. Bedford
7. Westlake
8. Mentor
9. Cleveland Heights
10. Fairview Park

Conclusion 

Given these reasons and examples, I believe that a person, especially if at a young age, should really considerate to make such an investment because eventually this will benefit him/her. Cleveland housing market is one of the most affordable of the country and, althought you may not want to necessary live in the area, renting out an apartment in the Cleveland area, as shown previously with data, will guarantee a good margin of income without effort or a great profit in the case of a resale.

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2 thoughts on “5 Reasons You Should Buy A House When You Are Young

  1. Very helpful article.
    I never liked the idea of renting (not just a house but anything really).
    I feel like renting is a waste of money.
    The only benefit I knew of buying instead of renting was saving on rent since I own the house or whatever it is that I did not want to rent.
    I did not know about all of the other benefits such as the tax deductibles and making it a source of income.

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