6 Reasons Why You Should Consider Buying A Home At A Younger Age
Talking about the millennials and their habits is a cliche topic and a never-ending one. However, there is one point that should be considered for their better future is buying a home. Whether you live in India or any country the issue of buying your dream home remains the same. Young people are either not interested in home-owning or they fall short of their income to buy the real estate property they want to.
buying a home
Amidst the trail of arguments about not buying or buying a real estate property at a young age, the later one has stronger and valid points. Let's focus on those.
1. The earlier, the better
The tenure of your home loan affects the EMIs to be paid. The longer the tenure, lower will be the EMIs. The loan giving bodies calculate the EMIs taking into consideration your age and how long you can practically pay the EMIs. In India, the retirement age is 60 and the banks consider this as the age before which a person, under any circumstances, should pay his/her EMI and repay the complete loan.
It is also observed that the lenders are behind young people calling daily to provide home loans. The reason being, young people are at the beginning of their careers and will certainly grow in them over their evolving years. As the longer one carries over the decision of taking a home loan to buy a residential property, the bigger the EMIs become.
2. Flexibility in a starter home
A huge number of young people among homebuyers think that they will save up to their 30s to afford larger properties. However, it would be easier and wiser for them to invest into a smaller property first and then after a few years plan for a larger one. This will not only be affordable to them at the start of their careers but also give them the flexibility of upgrading to a better and larger property after the family grows.
3. A married couple, higher eligibility.
It becomes even easier for a young married couple to get a joint home loan. The banks consider these cases paramount as they are assured that two instead of one income will be backing up the home loan. It also reduces the risks for the banks as two instead of one borrowers are involved. A joint home loan also helps a couple to close down the loan considerably faster than an individual, enabling them to plan on other investments which will help them secure their future.
4. Upgrade life
It is also advantageous to purchase a home early as you can repay the loan while you are young and can focus on other investments and savings to lead a better life. This also opens new ways to upgrade your lifestyle to a bigger and better home, your 'dream home'.
5. Close it at the earliest.
Newly married couples today are postponing their plans to have children thinking that they could enjoy some years freely together. Such a decision works great for couples with this plan. This decision enables them to make a huge down payment on their home before the expenses related to children and their academics become an additional responsibility to them. With a bigger down payment, they can reduce their EMIs and get rid of the home loan faster.
6. Home- An asset
It is also observed that a well-researched home may appreciate in value of approximately 15-20%. If you buy it at an early age this home can be a huge incremental investment asset to you.
A wiser way to invest your hard-earned money is investing in an appreciating asset that paying rent every month for which you won't get any returns. Repaying of loans also gives you a financial advantage of income tax breaks. Indian Government has this way of encouraging young citizens to buy a home of their own and give a better future to their family.
The above reasons convince the point of buying a home at an early age. A financial discipline since an early age can make things to go easy to service a home loan.
Featured Products
