The American dream of home ownership is something that is not always attainable or even desired. The average age of a first-time home buyer in the United States is 34, according to Experian. The fact that The Knot reports that age 34 is also the average age for marriage in the United States is certainly no coincidence.
The process of purchasing a home is significant regardless of age. Owning a home is a financial commitment that necessitates some major choices, particularly financial ones. Build-to-Rent homes is a fantastic option to buying a house if that isn't possible, and many people concur.
You'll have to put up some cash up front whether you rent or buy a home. However, a mortgage will need a bigger sum. The typical down payment on a home is between $10,000 and $15,000, or 5 to 6 percent of the overall purchase price, according to American Family Insurance. Since the typical down payment used to be approximately 20%, that has decreased. In either case, a down payment on a home is a substantial sum of money.
One wonderful advantage of a build for rent home is that you don't have to fix the furnace when it breaks down in the midst of winter. Your landlord takes care of any repairs or replacements that are required. When you own a home, you are responsible for any repairs (the joys of home ownership). According to American Family Insurance, a homeowner should budget around 1% of the current market value of their property for annual maintenance costs. That implies that if your property is worth $300,000, you should spend $3,000 for upkeep and repairs. Of course, how a property is maintained on a regular basis might have an impact on that figure.
