We probably all know adults between the ages of 25 and 35 grappling to answer the question of whether they should move back in with mom and dad to save money to buy a house, or whether they should bite the bullet and move out into their own place, albeit, a place that’s rented. There’s a lot of factors to consider when making this decision and it’s certainly not a decision that can be made without some serious thinking. If it sounds like you’re in the same pickle, we’d suggest you consider these 3 key factors:
#1. You haven’t saved enough money
How much money you have saved in the bank can be a major determining factor in your ability to put a down payment on a house. If you have a significant amount of money saved and you have a healthy income coming in, you can probably stand to start exploring your options. If you don’t have a large amount saved and are just getting started, you may want to lay low with mom and dad for a while until you can save enough money to start thinking about moving out.
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#2. You haven’t done your research
Determine the costs associated with each decision: how much would it cost you to rent an apartment and how much money would it cost to buy a house? Talk to a Philadelphia real estate agent and ask them to give you ballpark prices for each option. Without a doubt, if you explain your situation, they’ll be willing to listen to you and help you in any way they can.
#3. You will never move because you don’t have a plan
If you decide that you can’t move out of mom and dad’s house quite yet, don’t just resign yourself to living there. It’s time to create a plan. How much money do you realistically need to make before you can start searching for your next place? Now think about your income and how fast you can accumulate this amount of money. This is your timeline. If it’s a short enough time span (1 – 2 years) and you think you can handle being under the same roof as mom and dad for that time period, then by all means, move in and save all the money you can. However, if you know it’s going to take a while to save the money you need to buy a house, your choice is going to be a bit more difficult. You’ll either have to spend a significant amount of time living with your parents to save up for a place or spend a significant time – and money – renting while trying to save as much money as possible for a place of your own. You’ll have to pick the lesser of two evils on that one depending on what you feel is best in your current situation.
We will say that if you’re very young, it’s probably best to stay with mom and dad because you want to focus on building up your credit. You will not get approved for a mortgage loan without an in depth credit check, so if you don’t have the financial history to back up your desire for a house or apartment, you might as well work on building your credit history now as opposed to later.
All in all, there’s nothing wrong with living with mom and dad for a bit of time while you save up the money you need to buy a place of your own. If you have a great paying job and you know you can save enough in a short amount of time, that’s the best-case scenario. But if your situation is any different than that, we suggest doing the research and creating a savings plan so you can prepare for how long you’ll be under mom and dad’s roof before you can finally strike out on your own.
If you have any questions regarding being a first time home buyer or would like to checkout homes for sale in Philadelphia, schedule an appointment with AGENT LADY.
About Agent Lady: Cherise Wynne is a leading real estate agent in Philadelphia, helping home buyers and sellers navigate the City of Brotherly Love, with a special focus on first time home buyers. To chat about getting started with your first time home buying experience, click here.
