Five Benefits of Purchasing Real Estate When You're Young

Fresh out of college, newlywed, new career, new city. There may be a lot of “new’s” when you’re in your twenties. These younger days can be hard to navigate as there are a million different directions that you can go. What tends to be at the back of your mind when you are this age is saving and investing. A lot of times, you barely have enough money coming in as it is- you don’t want to put any of that money that you could be enjoying away in an investment.


However, real estate investing could offer a different and more enjoyable option for you. If purchasing a home is an option for you, there are a variety of reasons to start investing in real estate at a young age, as opposed to renting an apartment.


1. Pay it Off Earlier

The younger you are when you take out a loan for a house, the younger you will be when you pay it off. Most loans last around 30 years. If you take a thirty-year loan out on your home before you are 30-years-old, you can have it paid off before you are 60. Even if you sell this first home, as most do, and upgrade when you are more financially stable, you will be able to put more down on your second home, and still pay it off in a timely manner.

2. Own Assets Instead of Money

As the American dollar continues to lose value, many recommend that you move your investments over to assets rather than cash. Real Estate is a lucrative investment asset to have in your portfolio. Every month that you pay your mortgage on a home, you will be turning cash into an owned real estate asset. This can help pad and diversify your financial portfolio while also exchanging your cash for a more stable form of investment.

3. Gives You Value

Another benefit of owning rather than renting is the idea that every month the money you spend on housing will go directly into your own value. When you rent a space, you are helping someone else pay off their mortgage and padding their investment. When you own the home that you live in, every month you will be padding your own value. When you start this at a young age, it will be a lot less wasted months of rent payments, and many more months of your monthly costs actually adding to your own equity.

4. Rent Rises Faster Than Homeowner’s cost

With inflation, rent tends to see significant increase, even from a year-to-year perspective. Once you are closed on and paying for your home, you will be much less affected by inflation as you would be when renting. As inflation continues, rent will continue to rise at a much faster rate than homeowner’s costs, and therefore, you will likely save money in the long-term by choosing to buy rather than rent.

5. Resting Investment

Perhaps one of the best parts of investing in real estate at a young age is that unlike other forms of investment, real estate is a “resting investment.” Essentially, this means that all you have to do is live in the home, as you would anywhere else, and with the rising real estate market, your investment will grow with time. This makes this form of investing much more lucrative for the young investor who isn’t looking to move assets any time soon, than it would be for the older investor looking at retirement.


If you are looking to make your first real estate investment, it is important to ensure that you get the best deal possible to set the stage for all following investments. Our experienced real estate attorneys can help guide you through the process to help ensure that this first purchase runs smoothly. Contact Gurney Law Group today, and let us handle the contracts and details of your first home purchase.

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