A couple (in a small city) working together to save for a down payment could be the best-case scenario for homeownership. Two heads are better than one, and this situation proves this.
The only things that can get in your way are yourselves. I want to review some of the downfalls you may face if you don’t get on the same page.
Welcome back to the Saving for a House Down Payment series (#1, #2), where I recreate every saving scenario I can imagine.
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Getting on the same page. The most challenging part of being a couple is getting on the same page. If you are a young couple, there are so many difficult future questions to ask each other.
Perhaps the most important questions to ask are, “Do we want children?” and “Will we put them in private school?”
These questions will dictate the size of the home you will need to purchase. Also, you will need to determine if one parent wants to stay home with the children.
I am currently reading a book on homeschooling, and I am convinced that this is the best way to educate my grandkids. Homeschooling can give you all major savings throughout your lifetimes.
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Small city for the win. I love small towns; however, they usually bring small salaries. Luckily, one or both of you can import a massive salary by working remotely.
Although you live in a small city, your house payment may be costly—the home I bought in 2017 cost $180,000 in a small Florida city. By 2022, its value had jumped to $300,000.
Therefore, you will need to save for your down payment quickly. There is no time to dilly-dally around as you start working your jobs.
I recommend trying to save for a down payment in three years or less because the housing market is just too dynamic. But you do have some things working in your favor.
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First-time homebuyers benefit. If you are first-time homebuyers, you can get access to many once-in-a-lifetime benefits.
You will get the best interest rates if your credit is okay. Also, you can use the FHA loan to put down 3%. Or you can attempt to find a home that meets the USDA rural area loan, which doesn’t require a down payment.
There are other loans and programs for low-income households, which you may qualify for if you are a young couple. Look into every avenue here. This is your only chance to get a solid deal and build generational wealth.
Starter home vs. family residence. If you plan to have children, should you buy a starter home or prepare for a family with a bigger residence?
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Although it is nice to buy a big home to allow your family to grow, buying a starter home is a much better choice.
No matter what home you buy, you will want a different one in 7-10 years. That is kind of how life works. You’ll notice little things you want to change in your current residence.
My wife and I built our first home as a “dream/forever” home. However, we bought two more homes afterward.
Starter home rental wins. You will see the benefits of keeping your starter home when you begin to rent it. The rental market for tiny starter homes is second to none.
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When I say starter house, I am talking about perhaps a two-bedroom, two-bathroom between 800-1,200 square feet.
We bought our second home specifically for rental purposes, and it is doing amazing things for us. It is 1,600 square feet, and we’ll never have to worry about finding a renter.
Don’t “play house” too soon. The number one setback in young couples is “playing house” too soon. I define playing house as spending money like you are 50 years old when you are not.
When couples begin playing house, they obtain multiple pets, buy expensive cars, travel on vacations, and visit great restaurants. They say they want to enjoy their youth.
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The best thing about being a young person is having a body that works with you. Do not waste this time on inconsequential things as you age.
I am 41 years old, and we didn’t start playing house until I reached 39. We got a dog, still have older model vehicles, and began upgrading some things around the house.
Grind hard now. If you can stay on your purpose early in your relationship, you will reap the dividends later. I know social media hates delayed gratification, but practicing it will change your life.
My wife and I will both retire before age 48. We have three homes and a hefty dividend portfolio. We will also have an excellent military retirement and books that earn royalties.
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I say these things because other 40 years olds are buying boats, cars, motorcycles, and RVs. They will work until they are 70 to pay for these things.
Please reconsider your spending habits if you want control of your time and location. Look where your parents are currently—did they ever get ahead of the rat race?
Buying your first home in the early stages is perhaps the single greatest determination of future wealth. Once you build equity, you will have the financial leverage to parlay into more wealth-building activities.
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Do not forget you can also rent rooms if you want a more substantial property. The moral of the story is that you need to think and act strategically.
Conclusion. It will be a good purchase if you can find a small duplex or a home with an accessory dwelling unit.
Our society places an oversized weight on having fun. The most disciplined couple wins the prolonged war. Don’t be blinded by the glitz and glamor of big homes and fancy vacations.
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The real fun in life is having a sense of purpose, direction, and moving along a path. I love filling my wife’s car with gas and going to Sam’s Club without worrying about cash flow.
The true meaning of life is building a family with someone you love. It is much easier to keep your family together when your financial house is in order.
Therefore, prioritize your financial health ahead of everything else in your house. Trust me; you’ll get the home of your dreams someday. Good luck!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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