Waiting until you’re in your 40’s to purchase your first property might just be one of the most boss moves you’ve ever made, and it isn’t as uncommon as you think! According to the Australian Bureau of Statistics (ABS), a third of first home buyers who purchased a property in the 2015/16 financial year, were aged between 35 – 54, up 26 per cent from two decades earlier.
By the time you enter your 40’s, your priorities regarding your career, finances and family are generally figured out, or at least more developed than what they were in your 20’s and 30’s. Buying later presents opportunities that younger house-hunters overlook. For example, you could be 36 with a 5-year-old or you could be 49 with teenagers who have just finished college. Both scenarios have drastically different current and future budgets for purchasing a home.
The decision to buy a house in your 40’s should be reflective of your needs right now.
There are two mindsets to adopt:
1. It is never too late
2. Now is the best time
Ask yourself – which is better: to buy a bit late in life or not at all?
Shorter term loans tend to be more appropriate for those in their 40’s, as most of your major life expenses are behind you and you’ve already spent your 20’s and 30’s climbing the career ladder, putting you in your strongest financial position. You may be in a position to pay down a new mortgage quicker than a standard 30 year loan term.
If you are tossing up whether to buy your first home, set some goals but be strategic.
Envisage the lifestyle you want –
Where do you want to live?
How often do you want to go on holidays?
What are your entertainment expenses?
What is your retirement plan?
Be realistic, but at least set the bar to be comfortable.