Full disclosure, I’m not a fan of the term “forever home.” While it’s a lovely notion, for most of us life will bring changes: some planned, some not. Those changes may impact our needs later in life. So rather than a “forever home,” let’s instead think of it as “long-term” home.
If you go into buying your first home thinking you’re looking for a long-term home, you’ll most likely end up holding out for certain amenities or “must-haves.” Of course, the exact must-haves will vary by person, but common ones include a 2- or 3-car garage, a large yard, finished basement, fireplace, style/size of the kitchen or bathroom(s). You get the idea.
Those popular amenities often come with a higher price tag, which may mean you need to save for a larger down payment.
The longer the delay in buying your first home, the longer the delay in building your net worth through equity. The Urban Institute found that there is a $72,000 difference in the median housing wealth of those who bought their first home between ages 25 and 34 and those who waited until they were 35 to 44, and more than a $100,000 difference for those who waited until they were 45 or older.
Of course, owning a home isn’t only about building net worth. The NAR report shows that the primary reason first-time homebuyers bought a home was the desire to own a home of their own (62%). If that’s your primary reason as well, ask yourself if you truly desire granite countertops and a walk-in closet, or if you’re willing to wait until later in life for those features if it means owning your own home sooner.
