Summary of Housing

If you’re in your late teens or early twenties, chances are that your housing options will be getting an apartment or living at home. Owning a home might not even be on your horizon. But it pays to start thinking about it early on.

Though there’s no investment potential in it, renting is still a wise choice for many people. There are many hassles you don’t have to worry about, the costs can be much lower than owning, and you can still work on creating wealth through other means.

Home ownership has its pitfalls. Still, for most people, home ownership is part of the American dream. Not only do you get to live in your own "castle," but you own an investment that can grow in value, helping build your wealth and stability. And you can have a place to shelter a whole family—even an extended family if the home is large enough.

No matter where you stand, there are some activities you can do to help you choose your housing. Let’s look at them.

Things to do

• Make a list of what you need and want in a home, including ideal neighborhoods.
• Determine whether buying or renting is more advantageous.
• Set up a dedicated fund and begin saving up for a down payment, a security deposit, and other housing expenses.
• If you want to rent, research rental agents in your area who could help you find an apartment.
• If you want to buy a home, get preapproved for a mortgage loan with a payment you can comfortably manage.
• Find a real estate broker or begin house-hunting on your own, using the Internet or a newspaper.