Traditionally, married couples are the ones who buy homes. But recent surveys showed that single women are not too far behind married couples when it comes to homeownership. In fact, they are the second most common homebuyers after married couples. Unmarried men fall a distant second since single women are twice as more likely to buy a home than single men. As they become older, the gap widens even further. This happens even though women earn less than men, and the gap in their wages, as of 2020, is at least 80 cents to a male co-worker’s dollar.
Trends for Single Women Homebuyers
Here’s what statistics have to say about single women homebuying preferences: they are more economical, they prefer two bedrooms and more, and they can compromise on size and price as long as they get the amenities they want. Also, women homebuyers are particular about the location and environment of their homes. They prefer condominiums over single-family homes, too.
Financial Factors That Affect Women Homebuyers
Globally, women earn less than men in the same position they hold. This does not stop women from trying to apply for home loans no matter the circumstances of their marital status and the stability of their jobs. They understand that leasing a home does not add to their assets. It only assures that you have a roof over your head for another month.
That’s exactly the opposite with mortgages. The more months you fulfill your obligations, the nearer you get to fully owning that property. This is something that isn’t lost on single women who want to be homeowners.
Think Long Term
Home prices have been on an upward trend for the past years. The pandemic did not change this fact, although there is more volatility in the market. Still, real estate is a good investment as long as you consider your plans in the future. What happens to this home when you get married or when you are deployed to another state or country? You have to turn a profit when you eventually decide to sell or when you decide to rent it out.
Thinking long-term also means being particular about the area where the condominium building is located. Is it near malls? Is it near tourist places? Is it in an underdeveloped area of the town? What might happen to it in the future? Any profit you hope to generate in the future will depend on the location of your unit.
Run Your Own Numbers
Lenders will typically want to approve your loan. They do it even if a borrower has horrible credit standing, though they impose a higher interest rate. However, it is not enough to depend on the lenders for the determination of your ability to pay off a mortgage. You should run your own numbers. This means factoring in your living expenses, savings, and the cost of the home mortgage, insurance, and maintenance. Of course, you need an emergency fund, too.
Don’t Listen to the Naysayers
A lot of the people around you may not agree with your decision of buying a home. Why would you buy one if you don’t even know if you’re going to stay single or if you are going to get married in the future? Is it practical to own a home in this market? Focus on what you want. Forget about what others say (unless it has something to do about interest rates and insurance payments). The important thing for you to know is that you can afford a home. It is always a good investment regardless of what others say.
Make a List of Priorities
Your list should have two columns: one for your needs and another for your wants. Prioritize having your needs first. Do you want a big bathroom? Do you need two rooms for when you want to rent out the other room? The wants will have to wait until you checked all the boxes in the first column. Condominium units have a lot of great amenities. Do you want one with a gym, sauna, and pool? But what happens when you can get all those things but can only afford a studio-type unit in the same building? All of these should play into your decision to choose that condo.
Single women have been increasingly valuing their independence. They also view homeownership as a critical tool for building their assets and investment portfolio. However, that does not mean you have to rush into choosing a condo unit. Take your time. Talk with real estate agents. Ensure that the condo unit meets all your needs and fits your budget.