When I was 18 years old I decided that I wanted to start my investment portfolio and buy a house.
I was working at Starbucks making about $9.00 an hour while going to college, but I was determined that this was going to be a wise move for me.
I visited a realtor friend from my church and he graciously and lovingly walked through my finances with me and determined that I was probably not going to be able to afford the purchase of a property on my current income.
I was sad. But when I look back I am thankful for his honesty.
Fast-forward a few years to when I was 22. I was finished with college and was in a more steady job. I decided to try again.
I went to the same realtor friend and this time, when we looked at my finances we determined that purchasing was more of a possibility.
It was 2009 and I ended up purchasing my first property. It was a little condo - 2 bedrooms, 2 bathrooms, and an open living space. It was just under 1,000 square feet total. A perfect starter place.
Since I was a first-time homebuyer, I qualified for an FHA loan which gave me the opportunity to put a small downpayment down on the property. I lived in this little condo for a little over four years. It ended up being the first house my wife and I lived in and the place where our two oldest children came home from the hospital to.
When the time came to move, we ended up selling the condo for $134,000 (I originally purchased it for $87,000). Needless to say, we made a great profit on it and were able to move up in house.
I tell this story not to brag, but as an encouragement for young adults to consider purchasing rather than renting. Without a doubt, the circumstances need to be right and I would never recommend over-stretching yourself or doing something un-wise. However, I have seen many young adults pay large sums of money towards rent every month when they could be paying the same amount (or lower) towards an asset that they own.
That little condo purchase was a huge factor in my financial portfolio and I am so glad that I made the decision to buy rather than rent.
When I purchased my little condo there was so much I did not know. I am so glad that I had a realtor who had my back and who cared about me and was not simply trying to get a commission.
If you are in your 20's and currently renting, purchasing a property could be a wise financial investment for you. Moving in this direction could have positive ramifications for your financial future.
I would love to talk with you about this.
I want to help you WIN and set you up for a healthy financial future.
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