Is it too late to buy now? 5 things to consider if you’re a lifelong renter‍

Perhaps you're a Gen Xer or a Baby Boomer, but you've never owned a home. You may consider: "Is it too late for me to buy a home for the first time?" If you peruse Reddit, you will find many people in their 40s, 50s, or even 60s pondering the same question. While it's a highly personal decision, it's never too late to consider buying a first-time home. Ultimately, the decision should be based on various factors unique to your circumstances and goals.

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Don't let your age cloud your thinking. Instead, consider the following factors to help you decide whether to remain a lifelong renter or buy a home for the first time.

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1. Maintenance and Responsibilities

After buying homes, some people find it a pain. Whether it's unexpected repair bills, yard work, or general home upkeep, some people would rather let a landlord deal with the upkeep. Buying a home involves maintenance responsibilities and additional costs (repairs, property taxes, homeowners insurance, etc.). Are you prepared for these responsibilities, or do you prefer the convenience of having a landlord handle maintenance issues?

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If you still want to buy but do not want to deal with some of the maintenance, consider a condo and have them handle the outdoor maintenance. Or, depending on your age, consider a 55+ community to let them take care of things like yardwork and snow removal.

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2. Long-Term Plans and Stability

Consider your long-term plans and stability. Are you more of the type who lives to pick up and go? Or are you looking to settle down in one spot? Are you still open to relocating for job opportunities?

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One of the positives of renting is if you don't enjoy your apartment, you can move to another apartment at the end of the lease. If you own a home, many more costs are involved and planning is required. But buying a home often makes more sense if you plan to settle in one place for an extended period.

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3. Building Equity vs. Renting

Owning a home allows you to build equity and benefit from appreciation. Renting provides flexibility but doesn't offer the opportunity to build equity. Another consideration is when you buy a home, your cash outflow will remain relatively predictable. This is opposed to rent, which often continuously climbs. While some people only see their rent creep up a small amount over many years, others have seen their rent increase by more than 20% in a couple of years. Renting can be a gamble while buying can provide more stability.

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Consider what's more important to you in the long run.

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4. Interest Rates and Loan Options

Explore different mortgage options and current interest rates. 

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The days of 2% mortgage interest rates may be gone, but it doesn’t mean you can’t buy. While the current mortgage rate is around 7%, many people are still jumping into the housing market if they have funds for a down payment. They still view the mortgage rates as being low compared to the 18% plus interest rates in 1981. Some buyers suggest if the rates continue to rise, you’ll be thankful you bought. Plus, if the rates drop in a few years, why not refinance?

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First-time homebuyers have various loan options to purchase their first home. Some standard loan options include conventional private-lender loans without government backing. The down payment amount varies but could be between 3-20%. FHA loans are popular among first-time buyers due to their lower down payment requirements (as low as 3.5% of the purchase price).

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Understanding the various loan programs available is essential to finding one that suits your financial situation.

5. Lifestyle Preferences

Lifestyle preferences play a significant role in determining whether to buy a home. Different aspects of your lifestyle can heavily influence the decision-making process regarding purchasing a home or remaining a lifelong renter. Some of the factors include proximity to work. Some people enjoy living closer to work, being able to walk to work, and saving hundreds or thousands of dollars annually on commuting costs. Others may prefer certain property types—like a single-family home with a yard for gardening and outdoor activities. At the same time, others opt for a low-maintenance condo or apartment offering amenities like gyms or pools. Evaluate your lifestyle preferences. Some people prefer the flexibility of renting, while others seek the stability and sense of ownership that comes with homeownership.

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Ultimately, deciding between remaining a lifelong renter or buying a home for the first time depends on individual circumstances, preferences, and goals—not your age. Many realtors have seen it all, from selling first-time homes to 19-year-olds to people in their 60s. It’s never too early or too late to buy a home, if that’s the path you prefer.

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Nestment, Inc. does not guarantee and is in no way responsible for the accuracy of the information provided in this blog post. All information is provided “AS IS” and with all faults. Data presented here may not reflect all real estate activity in the market.  While the information on this site is about legal and tax issues, it is not intended as legal or tax advice or as a substitute for the particularized advice of your own attorney and tax professional.