I Bought a Home in My 20s: 5 Low-Risk Strategies Gen-Z Women Are Using Right Now
Being able to afford a home in your 20s is a luxury not many people have, mostly because of the financial bet they are taking when it comes to purchasing real estate. Gen Z — more to the point, Gen-Z women — are finding more ways to homeownership that involve less gambling on their financial futures.
Here are five low-risk homebuying strategies Gen-Z women are currently using.
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1. Redefining the Traditional 'House'
Natalia Bassova, licensed real estate agent and owner of Resort Real Estate Inc., found that in her experience, Gen-Z women homebuyers are taking a traditional approach to purchasing properties with new twists: manufactured and mobile home ownership.
“Manufactured/mobile homes were previously shunned due to negative stigmas associated with this type of housing and, therefore, were not considered a mainstream option for achieving homeownership,” Bassova explained.
2. Tapping Into Financial Assistance
One of the most common questions Realtor Christina Rordam gets from female Gen Z buyers: are there any programs for first time purchasers?
“It's worth exploring the government-sponsored programs, as well as programs that lenders offer too,” Rordam explained. “Young female buyers should explore any possible incentives for downpayment assistance and partner with a locally-knowledgeable real estate agent who may know of less-widely-known programs.”
3. Leveling Up Homes Over Time
Bassova’s biggest tip for Gen-Z women homebuyers looking to create financial security in the long term is to use the traditional approach but incorporate it into today's market.
“Buying a moderate first home, condo, townhouse or other entry-level property is not a step backwards,” Bassova said. “Rather, these types of property can provide a solid base from which a buyer may begin to build equity.”
4. Owning a Rental Revenue Stream
Rordam observed that a smart strategy for Gen-Z women looking to invest in real estate can be to purchase a duplex and rent out the other side. “They can buy such a property as an owner and use the rental income to cover a percentage of their mortgage,” Rordarm explained.
“In Central Florida right now it's more of a buyers market,” Rordam added. “So Gen-Z women purchasing homes should consider asking for closing costs and using some of that contribution to buy down their interest rate.”
5. First Home, Not Perfect Home
The key, in Bassova’s professional opinion, is not to focus on whether the property looks like the “ideal” first home. “A better question would be, ‘Is this home going to provide enough for me to maintain myself? Do I have enough left over each month to set aside funds for emergencies, as well as plan for my future goals?” Bassova said.
Bassova believed that this is where Gen-Z women are being very practical when it comes to homebuying. “They are not always trying to reinvent homeownership,” Bassova explained. “In many cases, they are returning to one of the most reliable strategies in real estate: buy what you can reasonably afford, take care of it, build equity and trade up when the time is right.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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