We just recently passed the 3 year anniversary of when we purchased our first (and current) home, and it’s crazy to think how quickly that time has passed by. It got me thinking about the experience we had purchasing our home as young adults and how we managed to pull it off while also planning our wedding at the same time.
I’m going to share how we managed to purchase a home at a young age, in hopes that it might be helpful to anyone else out there who is dreaming about home ownership but feels as though it’s out of their grasp. Here is how I bought a house at 22!
How to buy a home as a young adult:
1. Make home ownership a priority
While I have rented apartments before and see nothing wrong with that path, I’m someone who just doesn’t feel at home in an apartment. I need a place to live that feels more stable and completely my own to do whatever I please with. Realizing this, we made the decision that owning a home would be a top priority for us, and therefore sacrificed spending in other areas of our life as a result.
If there is one piece of advice I have for any young adults out there interested in home ownership, it’s that you have to make sure this is something you truly want. If you think owning a home is all fun and games, you’ll be in for a real (not so fun) surprise. Things break and need to be maintained, unexpected repairs happen, the lawn needs to be mowed and flowers watered, and just keeping an entire house clean can be an endeavor in its own. If you don’t desire all the responsibility that comes with a house, you might end up regretting your home purchase and long for the days of renting an apartment.
2. Stop wasting your money on booze and eating out all the time
It’s true, many twenty-somethings spend a lot of their money at bars and going out on Friday and Saturday nights. I’m not judging those that choose to spend their money this way, but again, it’s a matter of what your priorities are. Perhaps your income allows you to go out as much as you’d like and still afford a mortgage, and if that’s the case, then that’s awesome and I’m truly happy for you!
This just wasn’t the case for us, so we were forced to really evaluate our lifestyle and figure out what areas we could cut back on. We are homebodies as it is, so cutting back on going out was an easy choice for us. I’ve never been big into the bar scene, so it’s something I don’t miss at all. Don’t get me wrong, I still love to go out for dinner and drinks with friends every so often, but I prefer having it as an occasional treat rather than every weekend. Most days, I’d rather whip up some margaritas for the girls at my place and have a relaxing night in anyway.
3. Cut down on all unnecessary expenses
This goes beyond just eating out and hitting up the bars too much. Do you have any other money-wasting habits you can cut down on? Try to save money in every area you can while you are saving up to buy a home. You would be surprised how much all the little expenses can add up to big bucks! We went on a major spending hiatus while saving up for our down payment and it helped tremendously. We had many a frugal date night while saving up for our house, and it is something that has stuck with us through the years.
4. Find ways to bring in additional income
I apparently had a side hustle before I even knew what a side hustle was. For anyone unfamiliar with the term, a side hustle is something you do (on the side) to make money in addition to the income you receive from your main or full-time job.
For example, I have always loved kids and babysat many nights throughout middle school, high school, college, and even for awhile after I started working full-time. I have been a saver by nature as long as I can remember, and all of this babysitting money over the years ended up making up a nice chunk of our down payment for our home. I wasn’t making millions or anything, but I did make several thousand dollars over the years just by doing something that I really enjoyed anyway!
If you have a passion for something that you think you can make a bit of money doing, that might be a good side hustle idea for you! Starting a blog or website can also be a fun way to either make money directly through your site, or to promote your side hustle service & product offerings.
Final note
While there are obviously many other factors involved in purchasing a home, we found that these four strategies really helped us in being able to afford our current home, in addition to making sense financially regardless of home ownership. There are many responsibilities that come with owning a home, and many weekends spent tending to our yard and fixing things up, but my adventure as a home owner has been a mostly fun and fulfilling one. It’s great being able to make our house into a home that we’re proud of, and learning new skills along the way as a result.
We did what was necessary at the time to turn our dream of home ownership into a reality, and I’m grateful that we were also able to be first time homeowners at a time when prices were extremely low. I also understand that owning a home isn’t for everyone. If you choose to rent and never own a home because it just doesn’t mesh with your lifestyle, then that’s great too! 🙂
What are your thoughts about purchasing a home as a young adult, or even in general?
Great post Christina! That’s awesome how you became a home owner so young. I would love to buy my first house while I’m still in my 20s, but I currently just don’t fee ready to deal with the responsibility of homeownership. I want to do everything myself so I wouldn’t be up for hiring help around the house but I just lack the time right now. I also want to save 20% for the downpayment + closing costs so it could take a few years. But I agree, cutting back on unnecessary expenses will definitely help free up money money. I’ve never been a big fan of the bars myself either 🙂
Thank you Chonce! That’s great that you realize that prior to purchasing though, I think that’s very smart on your end. One of my regrets with purchasing our home was not having the 20% down, so I think it’s wonderful that you are making that a priority on your path to home ownership!
I purchased my first home when I was 25, thanks to money my grandmother left me after she passed away; without that, I wouldn’t have been able to afford a down payment for another few years. Being young, my partner and I bought a half-acre, four-bedroom house, thinking we’d grow into it when we started to raise a family. Then the half acre became difficult to upkeep and we decided to not have kids. So we sold the house after a year and downsized to a three-bedroom townhouse. It’s a much better fit! The first house was definitely a learning experience. Like you said, maintenance is a HUGE issue and shouldn’t be taken lightly. After renting for several years, however, I’m proud to be a homeowner and take pride in my home. 🙂
That’s nice that you were able to put your inheritance into such a practical purchase Meredith! 🙂 It would have been easy to just blow the money, so I think that’s great! Very good point, bigger isn’t always better! Although I think I would really love 1/2 an acre for Little Miss to run around in, hah! That’s awesome that you weren’t afraid to downsize to something that would be a better fit for you.
These are really great tips Christina!! Prioritizing our spending is definitely how we afford to travel and do other things that lots of twenty-somethings don’t do. I think eating out and drinking is a HUGE money drain– it’s so easy to spend over $100 a weekend if you’re not being vigilant. Another thing to remember though is that the housing market is different in different places. We had some help buying our new place, and we had to go all-cash. Lots of very reasonable twenty-somethings just can’t swing that. Thanks for sharing your experiences! 🙂
It really is, Daisy! It can easily add up to thousands of dollars every year. So true, the housing market is so different around the country! I think in the near Chicago suburbs we are somewhere in the middle regarding pricing, although we have pretty high taxes. I’m sure purchasing a home in California is quite a bit more difficult. That’s awesome that you were able to go all-cash though, good for you!!
Great post! I really wanted to buy a house before my husband and I got married. I met with a realtor, hoping to get some numbers in place, but she was so incredibly aggressive, the whole experience was totally off-putting and overwhelming. I’m actually glad we rent now because we might be moving soon, and I’m able to use this time to pay down debt and be in a better financial position for when we do move forward with looking for a house.
Thank you Chela! Ugh that’s awful, I’m so sorry to hear that. The right realtor can really make or break the experience for you. That’s great that it all worked out for the best though 🙂
We’ve owned 3 different homes and rented several in between. Right now, I just want to buy an RV and travel forever. You can plan and plan, but sometimes you just never know how you’ll feel at any point in the future. I have to say, what you guys did was REALLY impressive, Christina. My imaginary hat (it has to be imaginary, I hate “hat hair”) is off to you! I’m betting you had a lot of envious friends and family, especially with you guys being so young and all. A lot of people think what you did is almost impossible at any age, let alone early 20’s! You are so right. Prioritizing is key! 🙂
Great point and words of wisdom, Kay! Thanks so much, it was truly all about prioritizing it!
Wow!! Congratulations – that’s awesome to be able to buy a house at such a young age! And especially considering the market was great too 🙂 We bought our first home when I was 26 and then sold it two years later. We bought in a good market too so we sold it for a good profit then moved to NC! Since my husband is now self-employed, we’ll have to wait two years to buy a home out here, but that’s fine by me since we need to really get to know the area!
Great tips – and I love your new layout!! 🙂
Thanks so much Sarah! That’s definitely for the best, two years is the perfect amount of time to familiarize yourself with your new area and pick out your new future neighborhood.
Ah, thank you!! I was hoping someone would notice, so I really appreciate your sweet comment 🙂
My parents had taught me to save like crazy as a kid. So when I graduated college, I had enough for a 10% down payment on a house in the university district. (This was during the boom, or I never would have qualified.)
I used it as a rooming house, though, not as a true residence.
In the end, it proved to be too much for me since I was having health problems that limited my earning ability. But still, at least I can say that I had a lovely house for awhile in my early 20s.
When we were 32, my husband and I became homeowners after moving to Arizona. Prices are much better down here, which makes home ownership a more realistic goal for younger people.
Wow that is incredible Abigail! That’s so great that you were able to make some money off of it while you could.
Having lower prices can definitely make it easier to own a home. The prices in other areas around the country make me sick when I compare how much more we could get for less elsewhere.
Living in the suburbs of Texas, and now Oklahoma, home ownership was a bit of a no-brainer for us. But then again, we aren’t apartment dwellers by any stretch of the imagination. In fact, we are country folks at heart. When we are no longer tied to the city for jobs, we will move out to acreage – at least 20 acres up to as much as cash as we can save – to pursue agricultural activities. Owning a home isn’t for the faint of heart. But I do appreciate feeling like I’m truly home when I walk in…
That sounds absolutely lovely, I would love some land (although I would settle for even 1/2 an acre, lol!) for our kids to run around a bit at some point. I’m a country girl at heart too!
Yes, yes , yes! When I married my high school sweetheart at 23, we “scrimped and pinched” to purchase a condo in Lincoln Park. These are great suggestions. Many of my older friends and co-workers were paying $$$rent to live in the city but didn’t want to make the necessary choices to save for a down payment.
That’s so great Susan! It’s definitely not easy, but totally worth it to save up for your own place if it’s something that you really want! Thanks for sharing 🙂
Our problem, is my student debt. Doesn’t matter how much money we have saved up and ready (and have proof). It’s awesome that you were able to accomplish this!
Such great advice! I purchased a duplex at the age of 21 by saving my hard earned money. I lived in one side and rented the other. At one point, I had roommates and didn’t have to pay a dime out of pocket because rent covered the mortgage. Those were the days;0)
Thanks Jayleen! That’s so awesome – you are right, if only life was that simple these days. Heh!
We bought a house a couple weeks before our first child was born, and I was 24. It was very easy at the time, and then I ended up losing my job a month after her birth. All the tips you listed were how we were able to make home ownership and me being a stay at home mom happen all at once. 8 years later I am still at home with an additional 2 children and one on the way. =)
I’m 23 and in the process of buying my first home! I definitely don’t feel at home in an apartment either so I am very excited to move! It has been a reality check to spend so much money and to see how we’ll have to cut back but I feel like buying a home young is a great idea when possible.
Hello! My fiance and I are planning on doing the same thing in the next year or so, we are both twenty and plan on living at hos parents for a year while we save. Do you have any tips on credit building, or anything else that might be helpful?
Hi Reagan! That’s so exciting! I think this blog post has some great tips for building your credit: https://www.nerdwallet.com/blog/finance/how-to-build-credit/
Thanks for the article. I definitely feel the same about the difference between your home being a place you’re just renting and a place you’re actually owning. Great read!
Great Tips! everyone should aspire for their own homes and they should start preparing for it from their twenties only.