Buying a home early in life has several advantages…
A house is one of the most expensive & a lifetime investment, as compared to other purchases. Hence, buying such an appreciating asset early helps in correctly setting one’s financial goals.
Benefits of buying a home early
Future investment & Wealth creation: It allows youngsters to invest in their future, as it provides them with an asset that can be used, rented or sold as per their need, when the asset are ready to move on.
Tax benefits: As home buyers get tax credits, youngsters can use it for lowering their tax liability and this additional savings can substantially lower their new financial responsibility without additional income.
Youngsters tend to learn better spending habits: It changes the young buyer’s decision-making process, as they learn how to save and spend money in the most effective and efficient manner.
Planning aspects that a buyer in his/her decision should keep in mind
Planning the budget for a home, is more important than evaluating the maximum loan eligibility. For a first home purchase, set aside a budget that is affordable and in-line with your career growth and pay scale.
While most banks provide loans of up to 85 per cent of the property value, youngsters need to first check the EMI that they would be comfortable paying each month.
Loan planning: Consult at least two to three reputed banking/financial institutions, to understand the nuances of the home loan process, including documentation, interest, repayment terms, tenure implications, EMIs, etc.
Social infrastructure: Nearby retail, dining and entertainment options must be considered, given the fact that youngsters give significant importance to recreation avenues.
Project location and connectivity: Work hours tend to be longer at an early career stage and thus easy connectivity to the core business districts/hubs are important.
Clear titles and other documentation: A younger buyer may need extra guidance on the various legal aspects of a property, such as land titles, statutory approvals, WBHIRA compliance, etc. A consultant or expert can help evaluate the feasibility of a project in this context.
Prioritizing savings through asset building and one can end up becoming a smart real estate owner.
Source Reference: https://housing.com/news/buy-home-20s/