Home Ownership by Age 25? It’s Possible
Home Ownership by Age 25? It’s Possible
Despite being saddled with student debt and dealing with the repercussions of the 2008 financial crash, it’s still possible to become a home owner by age 25.
In order to accomplish the goal of owning a home, 26-year-old Emily Brown decided early on that she wanted to manage her finances carefully and live on her own terms. “I wanted a game plan, not living paycheck to paycheck,” she recently told CNN Money.
Brown’s advice to other young people wanting to buy property is simple: “Work hard, save a lot, and buy property you can afford.”
In addition to having purchased a home at age 25, Brown has paid off a large portion of her student loans and has begun depositing money into both 401(k) and IRA accounts.
While only about 20 percent of Americans own homes by age 25, Brown beat the odds by purchasing a “fixer upper” duplex in the suburbs and extended the lease to a prior tenant who pays $900 a month, enough to cover her mortgage.
After attending college during the 2008 financial meltdown, Brown was determined to hold herself to a rigorous standard, which allowed her to begin saving early. She drives a 2009 Ford Escape SUV with a dent in the side, firmly regiments the money she spends on recreation, and makes deposits into her IRA account religiously.
Brown opened her IRA account when she was only 18-years-old and worked at a local ice cream shop. Throughout college, she worked multiple jobs and paid internships, the monetary yields of which she funneled into her IRA.
Since graduating in 2012, Brown has worked as an accountant full-time. She contributes 6% of her $50,000 a year salary to the account, and her company matches it.
Even seasoned professionals are impressed by Brown’s frugality and discipline.
“She’s my idol,” said Yvette Butler, president of Capital One Investing. “I wish more of us started saving for retirement at 18.”
Source: “How I bought a house at age 25,” CNN Money (May 6, 2016)
