Fifty years ago it was legitimately possible for a single-income family to become homeowners as young adults.

Here in 2022, even with two partners both bringing in a salary and no kids, owning a house is beyond the reach of many young adults. Inflation has been significant across the board, especially on real estate. But salary increases have not paralleled that change.

Many are now wondering if they will ever be able to afford their own home. Susan Naftulin of Forbes shared her thoughts and why she believes investing might be essential for those looking to have the finances for the big purchase.

Naftulin explains how rising housing costs have made many younger people turn to renting out properties to start supplementing their income.

As stated, real estate is seeing a lot of growth, so by renting properties out, younger people become beneficiaries of that change rather than being hurt by it. In fact, Forbes cites Zillow as saying that home values are expected to increase by 13.2% by June.

However, while it might sound like nothing but positives to renting out, it does require patience. The Forbes article also states that you likely will not see profits through renting out until around seven years have passed. That can feel pretty far down the road for younger people hoping to see enough of a return to eventually get a home they are happy with.

Fred Hubler, Chief Wealth Strategist for Phoenixville-based Creative Capital Wealth Management Group, a wealth management practice that services families in 28 states and specializes in retainer-based planning and alternative investment strategies, advises his younger clients (usually children of current clients) to take a look at “house hacking”.

“House hacking,” says Hubler, “is comprised of a few different strategies that help someone get into a house they may not be able to without the hack.”

One strategy Hubler recommends is buying a home and renting out the rooms. Another strategy is to buy a home as a primary residence (for the cheaper mortgage) and then after the required amount of time, rent it out. Commercial mortgages usually require a higher down payment and sometimes they come with a higher interest rate.

Naftulin explains good preparation now is the key to seeing success in such a venture. It is important to find a neighborhood that has good prospects for the future.

And you also need to be prepared to do renovations on the home before renting it to ensure it is attractive to renters looking for modern amenities.

The property is an investment, which means it will take time and money to see it pay off and hopefully result in you being able to get the home you desire one day.

For more on how modern-day investing has changed life, consult the article published by Forbes here.

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Minimalist Youtuber Gabe Bult describes how he used house hacking to improve his finances and set himself up for financial independence and early retirement.

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Want to know if you’re on the right path financially? CCWMG’S Second Opinion Service (SOS) is a no-obligation review with one of  Creative Capital Wealth Management Group‘s Wealth Strategists. 

It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting with Fred and his team.

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