Many of us are quite familiar with the American Dream. Thanks to mainstream Hollywood movies. But what if we made movies on the Indian Dream? Well, we aren’t sure of all the elements in the Indian dream but we can certainly vouch for one- buying a home. For Indians, buying a house and investing in real estate has been a tangible goal in life. Although this mindset is slowly undergoing changes, the importance of having our own house has only magnified with time. To date, almost every Indian has the goal of buying his or her own house and becoming successful in the process.
This brings us to the next issue- what is the correct age of becoming a homeowner? Is there any right age at all? Mostly applicable for working professionals who want to buy luxury flats in Chennai, is the age of 30 the best time to make the move? While this is quite a subjective decision and many people believe that one should buy a house only when they are financially ready, we urge people to target their thirties to buy a home. Not sure why?
Well, in today’s blog we discuss why you should buy a home in your 30s.
Most people in their 30s achieve certain stability in their career
Most of us know that our 20s are the time for experimenting. You are fresh out of college and you have options to explore. You venture into the world and after some trial and error, you eventually find a career that makes you happy. As you move into your 30s, you are most likely to attain a sense of stability in comparison to your twenties. As buying a house is a big investment, this stability in your career will help you get a home loan. Now in your thirties, you can save up a lump sum amount for the down payment and pay off the rest of the loan within the tenure of say 15 or 20 years. In your 30s, your chance of not missing any EMIs are also low which ensures a healthy credit score.
Optimal loan tenor
Home loans are long term investments. When you buy a luxury flat in Chennai, you borrow a huge amount of money from a bank or a money lending institution. In this situation, you want to extend the tenure for your loan repayment. We all know that longer tenure means smaller instalments. But longer tenure also means you will be paying more interest in the long run. Thus, there needs to be a middle ground where you select a tenure that does not force you to pay too much interest, and yet you can repay the loan without too much stress of bug EMIs.
You will spend your money wisely
People have a tendency to spend almost all their earnings on the pleasures of life when they are in their twenties. They frequently eat in expensive restaurants, travel to exotic places and buy things on a whim. In their twenties, they laugh at the concept of savings and investment. However, with time and age, the value of savings and investment grows on them. When you reach your 30s, you calculate your expenditure, you have a budget and you try your best and stick to it. You have financial goals that you strive to meet when you are in your thirties. Hence, this is the best time for you to consider a long term commitment like buying a flat in Adyar.
You can gather funds for the down payment
Buying a house needs planning. This planning includes chalking out their finances that have a pocket for everything- emergency expenses, monthly expenditure, and down payment for an apartment in Adyar. However, this does not happen overnight. When you start working in your 20s, you can easily take up to 10 years to stabilize your income and save enough money that can help your clear the down payment for your house. If you are wondering why to pay a good sum of money as a down payment when your bank is ready to issue a loan, then you need to know that a bigger down payment not only reduces the principal amount of the loan but also decreases the burden of hefty EMIs.
Location
People in their thirties understand that buying a house is settling down, it is similar to putting down your roots in a place. Hence, choosing the location for your house is more important than simply googling luxury flats in Chennai. You must ask yourself questions like- How far away is my office from my potential home? How is the neighbourhood of the location I want to buy a house in, etc?
You get a higher return on investment
If you consider buying a house as an investment then return on investment is something that you must closely monitor. When compared with other forms of investments like mutual funds and stocks, real estate is one of the safest options. No matter how the market is, over time, you can get a good ROI from your real estate. Especially with inflation in the scenario, investing in real estate is the best option out there due to capital appreciation as well as rental income.
To summarize,
We understand that buying a house is a big commitment and it can take years to pay off a home loan. But when you plan ahead of time and manage your finances accordingly, you can buy a home for yourself and your family. However, we always suggest consulting with a professional before investing in any sector.
