Affording a property in your 20s is all about sacrificing luxuries in lieu of saving, and of course, finding the right city to move to. You can live in a great area that has bars and cafés, and nice parks – you just need to look in the right places.
To help you afford your down payment and find a great home, follow this guide.
Save Up for Your Down Payment
To save up for a down payment, you will want to try to get your living costs to half of what you earn after taxes. This can be done much easier if you live at home or if you find a room for rent with roommates that is very cheap.
Other ways to save money is to cut down on your spending. Don’t buy frivolous things. Try to buy in bulk for necessities. Choose free things to do instead of spending money. It will be hard, but you will save fast for your down payment.
Build Up Your Credit Score
Use a credit building loan, credit card, or other credit building tactics to boost your credit score while you save.
Choose a Great State to Move To
The first step is to choose a state that will help you afford a great property. Florida, for example, has no state income tax, meaning more money in your pocket that you can use after you have paid off your mortgage and utilities. Even the property tax is ideal at 2%, making this consideration when moving a no-brainer.
Choose a Great City to Move To
There are a few great cities to move to in Florida, but if you want affordability and great amenities, you will want to put the thought of Miami aside. Tampa, on the other hand (Florida’s 3rd largest city), is great for families, has plenty of parks, beaches, and things to do. The Tampa Bay area and surrounding neighborhoods also have a more historic vibe to them than you will find in the downtown area of Miami, so for those of you who want beautiful homes and brick sidewalks, this is the city to go to.
Property taxes here are also only 2%, and most properties are very affordable even if you don’t make six figures in your household. To find the best property for your needs, you are going to want a Tampa realtor that knows their stuff and is familiar with the area. This way, you can move to a neighborhood that has all the local amenities you could ask for, on top of great connections to the downtown area.
Be Prepared to Use Some Elbow Grease
If you want a great property at a price you can afford in your 20s, then be prepared to use some elbow grease. Try to look at the overall structure, because the best deal to be had is in flipping an older home. This doesn’t mean you should choose something that fails the home inspection, but if the paint is peeling off or the overall look is a touch outdated, think first what you can do to spruce it up.