Into The Big World

Once commencement is over, graduate students face an array of problems that no class could prepare them for. With the burden of a student loan and difficulties to land a job, graduates often forget about the importance of buying a house.

Even if a graduate has a student loan, becoming a home owner right after graduation is a better financial decision than writing checks to a landlord each month. In a long run, buying a house will save students a significant amount of money and might even serve as a regular source of income.

Benefits of investing in a house after graduation

The harsh truth – the real estate prices will rise indefinitely, according to Investopedia. More land can’t be built, so the demand and prices for the real estate will always rise, making it a great investment. Here are few other reasons why buying a house is a better option than renting one.

Stability

Buying a house gives you a security that renting can’t provide. Although renting in affordable college towns like Athens, Georgia or Boston might provide flexibility when you’re young, it’s great to think about purchasing after graduation. While your income might remain the same for the first few years, the rent is more likely to rise. When you buy a house, on the other hand, the monthly mortgage you pay is always the same. Moreover, having a stable environment and not depending on the mercy of a landlord is an emotionally satisfying experience.

Saves money over time

While you are writing checks to your landlord each month, you could have been paying off house mortgage. You will pay rent for an indefinite amount of time, but if you own a house you will eventually free yourself from mortgage payments and live free in your space.

Make some money

Don’t think that you are tied down to a home once you buy it. As a graduate who is most likely to move around for the different jobs, you can make money out of your travels. You just need to rent it out at a price slightly higher than your mortgage amount. This is a convenient way to get a stable income while continuing to pay off your mortgage.

Purchasing a house with foundation issue

Houses divide into two categories – the ones that have home foundation problems and the ones that will have home foundation problems. The signs of home foundation trouble don’t necessarily mean that the home is a bad deal, in fact, it can be an advantage for a student with a limited budget. Depending on the extent of the damage, the cost of foundation repair may fall well below the discounted price of the home. Moreover, once repaired, you are most likely to get a lifelong warranty. So this way, you will get a repaired foundation while also having a discount on a house purchase. More useful information about buying and selling houses with home foundation problems and repair can be found on Olshan Foundation Solutions’ website.

Buying a house with student loan: Tips

Being fresh out of college, you might be wondering whether it is okay to purchase a home despite having a student debt. As with the most financial decision, the answer is that it depends. However, becoming a homeowner even if you have student loans will certainly save your money in a long run and here are few tips that will help you manage your finances when considering to become a homeowner.

Get a roommate

You already got used to living with a roommate, so why not make some money out of it? You can rent a room to roommates, which will offset some or all the mortgage and other expenses. With estimates in hand, you will be in a better position to negotiate a fair price.

Low monthly student loan payments

The lower debt-to-income ratio shows your mortgage lender you have enough extra cash to make your monthly mortgage payments. So, consider refinancing your student loans and switching to a lower monthly payment.

Being fresh out of college doesn’t necessarily puts a burden on buying a home. There are strong arguments for buying a home right now and making the most out of your homeownership. However, always make decision based on your personal finances, priorities, and goals.