Why Young Couples Should Pursue a New Home in Washington

You’re young. You’re ready to take the next step in life. But is home ownership really it?

It’s hard not to question the sanity of it all. As a young couple facing a future that is still clearly marked with a lot of potential bumps along the way, does it make sense to invest in something so large as a new home? After all, there’s a lot that tells you otherwise.

• We’re the generation who has student debt the size of a small mortgage. And we know it’ll take years to pay it all off.

• We’re the generation that wants freedom. What if we want to move around, travel, spread our wings a bit before we declare a place home for good?

• We’re also filled with all kinds of stories about the real estate bubble, and how unwise a decision it is to make a move into something that’s unpredictable ever again.

No doubt, these thoughts have crossed your mind a time or two, but you may have been mistaken. Buying a house today is still an incredibly smart financial decision, especially if you’re considering laying down roots here in Washington. (And let’s face it, no matter how much we like to travel, we still have to have a place to call home, right?)

As long as homesteads have been for sale, real estate has been a wise investment. In fact, it’s always been the one decision that has stood the test of time. It’s what’s changed our financial situations and fueled our economic growth. More people have built wealth by purchasing a home than any other investment. It’s a great place to start, especially if you’re young.

Let’s say you’re 25 years old, you both have a stable income, and as a couple, you’re trying to decide where to live. Do you follow the advice of many bloggers and news sources out there touting what a waste of money home ownership is? Do you rent? Or should you take the leap and buy a new home here in Washington?

To answer that question, you have to look at the lifetime cost.

If you purchase a home today, you’ll seal in how much you pay for the home over time. If you buy a $250,000 home with a 10 percent down payment, for instance, you’ll take out a mortgage for $225,000. And, depending on your interest rate, payments will remain steady for the life of the loan.

Yes, that’s just the beginning of what you need to account for by owning a home. You’ll have to pay property taxes, which can increase over time. And you can’t forget about maintenance. Every home needs upkeep. You’ll paint your home every few years. Plumbing problems may occur. You’ll probably upgrade your kitchen a time or two. And let’s not forget the updates you’ll make as technology changes and time passes by.

But when you buy a house, it’s yours. Every payment you make goes towards the equity of your home. Yes, you’ll pay a lot of money over the years. But at the end, you’ll have a valuable asset that allows you flexibility moving forward.

Compare that to renting.

When you rent, you pay a monthly fee for the privilege of living in a space. You choose it; you have flexibility where you live. Yet, at the same time, you have very little flexibility as to how you live. See those blinds, the awful color, the cheap carpet? Yep, there’s nothing you can do about it. It’s a rental.

And every month you live there, you pay rent to the owners. Your money passes through to the owners who reap the rewards. Add that up over time, where your money simply goes toward paying for the right to live there for the month.

Nothing accumulates. Nothing adds up.

If you were to live in your $250,000 home until you were 55, that house would be paid off on a thirty-year mortgage. Sure, you’d still have the property taxes and the maintenance, but the house would be yours, to live it and to do with as you please.

If you rent? You’d still be renting, paying out month after month with nothing to show for it except the ability to move and live where you please.

Now, let’s talk about inflation because no matter what our current economic situation looks like, there’s only one thing we know for sure: change is inevitable. Look back over the past fifty years. We’ve seen it all: bear markets, bull markets, inflation, deflation, high interest rates, low interest rates. That’s life.

And it’s also the one thing we can depend on again in the next fifty years. It happens. Which means the likelihood of a home you purchase today at $250,000 staying at the $250,000 level is nearly non-existent. It will change. And more than likely the value will go up. Especially if you purchase it in an in-demand community.

And let’s face it, Washington is pretty in demand. It consistently makes the top lists of place to move to. And it has a lot of positives for young couples to jump into.

Still wondering if pursuing a new home here in Washington is the thing for you to do? Still have other popular rent versus owning questions on your mind?

• I rent because I don’t want the burden of home ownership.

Yes, owning a home means you’ll spend your time working on your home. Sometimes. Home maintenance isn’t an all-encumbering experience. If you purchase a new home you probably won’t have a whole lot of maintenance at all for the first few years. Sure, you’ll have the fun of selecting your décor and adding your own personality. But things like a roof can last a lifetime. And you won’t have to paint again for years … unless you want to. No matter where you live, you’ll pay for the experience of living like you choose to live. It just depends on the outcome overall.

• I can make more by investing in other things.

Sure, we all hear about the one stock that made someone a millionaire overnight. Who wouldn’t want to go back and buy Apple in its infancy? But what are the chances? And can you really compare money you spend on investments to the money you spend on living day to day? The smart way is to buy a house you can afford, and find creative ways to make it that much more valuable for you in the long run. Roommates anyone?

• It’s not a good time to buy.

Finding the perfect time to buy a new home in Washington can always be argued. Maybe home prices will go down a little. Maybe interest rates will drop. Maybe there will be a better opportunity down the road. But that same philosophy can be used for just about anything in life. You know when it’s the right time to do just about everything. You knew when you met THE ONE. So why not take the step as a young couple and commit to your financial future, too?

Now is the best time to pursue a new home in Washington. And if you’re ready to find the home of your dreams, we have a place for you to start the process. Whether you choose a home in one of our unique communities or have the desire to build on your land, your space, we have the perfect home selection for you. Let’s talk today.