Buying a home can seem challenging for those just starting their career. Availing of a long-term loan and paying EMIs for the next 20 or 30 years are just a few reasons that may force a person in their 20s to delay their dream of owning a home until they have sufficient funds. But, no matter how daunting it may seem, investing in a home sooner rather than later is beneficial. Besides contentment, you will feel secure that you have a home of your own. So if you have just begun working, we suggest you start planning on buying a home. Here are a few reasons why it would be a wise decision.
More time to repay the loan
Home loans have an extended repayment tenure, usually around 20 to 30 years. If you avail of a home loan in your mid-twenties, you will be through with the repayment once you reach your mid-fifties. You will repay the loan while still working and earning a steady income. A loan taken in your late 30s can be problematic because you will retire midway through the repayment tenure. And with retirement, the continuous cash flow will stop. So you will have to look for other ways to repay the loan, like liquidating assets.
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Affordable EMIs
Those who avail of a home loan must pay back the amount in monthly EMIs, which can last several years. Planning to buy a home early means you can opt for a long-tenure home loan. With more time, you can choose EMIs of lower amounts. As your income grows, you can also increase your EMI limit and repay the loan much before the actual date. Buying a house at a later stage may not offer you this benefit. You may have to opt for a short repayment tenure with higher EMIs, which can financially drain you.
Save on rent
Living on rent is expensive, especially in metropolitan cities like Mumbai. Furthermore, rents are not constant. Landlords raise rents depending on market conditions and general inflation. So the rent will be much higher three or four years later than today. Instead, it would be wise to buy a home that suits your budget and pay EMIs, rather than spending significant sums on rent. And unlike home rents which appreciate with time, home loan interest rates usually remain constant. Not only will you save money on rent, but you will also have a place you can call your own.
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Creating an asset
A property is a lucrative asset. If you buy a property at the beginning of your career, you will be satisfied with having something to call your own. As the owner of an expensive apartment, you will feel secure since you know you have an asset. Moreover, property rates witness appreciation. So if you buy a property early in your life and sell it after around 20 years, you will get good returns. In addition, you can also use your property as collateral to get loans.
Final words
The sooner you plan to buy a home, the better. Though purchasing a home at the beginning of your career can be challenging, it is not difficult if you plan it well. Besides, you should also make sure to buy property only from reliable and trusted developers. You can search for the top ten builders in Mumbai on Blox, a leading real estate buying platform. They will assist you with the procedure and also organise site visits. So if you have just begun working, start planning on buying your dream home now.