In the Indian real estate market, it is always debatable, whether or not we should buy a house early. While there are arguments on both the ends, there are strong and convincing reasons why one should invest in a home in the early years of life. The earning age and capability of individuals is completely different from that in the past. Millennials today have not only started earning at a younger age but the amounts being earned are also larger than before. There is more disposable income at hand with lesser responsibilities. The market is also more flexible with better loan rates, easy repaying options and multiple payment options. The below mentioned factors are in favour of people buying homes when they are young:
Compulsory savings
With so many avenues available to spend money today, savings do take a back seat sometimes. For the ones who have trouble saving, real estate can be the best form of investment. The repayment of loan taken to buy a house takes the form of compulsory saving and without even realising, there is an asset in the building. While home purchase is a liability, if we buy young, it becomes the largest valued asset in our kitty.
Ability to generate regular income
The first home we buy might not always be our dream home and we might not look at living in there immediately. The benefit of buying a home early, however, can be reaped through a regular rental income that can be generated from the property. We can enjoy being the landlord while earning a rental income that can actually be used towards repayment of our loan. The property appreciation continues to be a benefit.
Benefit of lower EMIs
The amount of EMIs is largely dependent on the tenure of the loan. As we understand that the longer the tenure, the lower would be the EMI. This makes it clear that the longer we postpone the decision of buying a home, the repayment term would become shorter and the amount of EMI would be higher.
Longer term value appreciation
When we buy a home early, we give more time to the property to appreciate. In a lot of cases, considering various factors, the appreciation of a property in the longer run could easily go in double figure. When we plan to take a loan for buying a property, there are also certain tax advantages that we earn which is another benefit.
Create your own décor
We all fathom a home of our choice. We often seek rental homes and push back the decision of buying a home since we do not want to part with our money. Rental homes do not give us the freedom to design our homes and live in our own creativity which is a big compromise. However, when we buy a home of our choice, we also have the freedom to do the décor that suits our choice and gives us peace of mind when we get back home.
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