When is the right time to buy your first home?! This is the most common question amidst the young and independent generation today. As Indians, we have always loved investing in real estate as it is tangible and not an investment that exists only on paper. Be it family or friends, the pressure to make the daunting decision that translates into a major change in lifestyle. Factors like lowest interest rates on a Home Loan, Attractive offers in the market coupled with the importance of owning a home in the COVID have disrupted the traditional style of thinking and encouraged the buyers from all ages to invest in a home, sooner than later.
Owning a home has both financial as well as emotional value and is considered to be a sign of success in the Indian households. Even today, buying a home is probably one of the most common financial goals of every Indian.
That brings us back to the pertinent question – what is the right age to buy a home?
Some people are eager and ready enough to fulfill this dream early while in their 20s. But others may want to take their time nice and slow and buy a house after they reached their 30s.
Wondering why in the 30s?
Here are 5 reasons you should consider buying a home while you are in your 30’s.
1. You’re secure enough in your job to make big financial commitments.
Job security is an important factor that lenders take into account when borrowers apply for a mortgage loan. By their 30s, most people start feeling a sense of stability and security in their respective careers. Therefore, they become more confident about making big financial moves.
Buying a house is a lot more than arranging for the down payment. It also involves general expenses on up keeping and home maintenance. By buying Flats in Dahisar at this age, you would be more prepared for whatever your new house might throw your way.
2. Higher loan eligibility.
A home loan is a long-term loan. Since the borrowed amount is huge, the longer you have to repay it, the lower your monthly installment. However, you also need to understand that the longer you will repay the loan, the more interest you will pay. Hence, it is important to select a tenor that allows you to repay the loan comfortably without paying too much interest.
3. Availability of funds for the down payment.
Buying your first home in your 30s gives you more time to put cash aside specifically for a down payment. Most people plan before buying a home. This means that they work on their finances, create a small corpus for emergency expenses, budget their monthly costs, and have funds for the down payment on the house. All this needs time. Even if you start working by say, 23-24, you would need around 8-10 years to stabilize your finances and put money aside for the down payment.
If you are investing in the under-construction project or 1bhk flats there is a lesser amount required for a down payment.
4. Longer repayment tenure.
Working individuals in their late 20s or early 30s stand a higher chance of availing a longer loan repayment tenure, going as high as 30 years. Since most salaried individuals retire by the age of 60, buying a home before turning 30 implies that you have about 30 years to repay the loan obligations. Buying flats in new projects at a young age would also increase the likelihood of completing home loan repayment during work-life years itself.
5. You Know Your Priorities.
Like where you want to settle down, when you are in your 30s, you are now entirely informed of your priorities. It is by this time that you must have realized homeownership can help you build equity and stability. You must have planned your budget, decided the type- the size of homes like 1bhk or 2bhk, or under construction project or resale flats and reviewed all other aspects related to property purchase. It is relatively complex for young people to enter the property market who still weighs their priorities and commitments.
Buying a house in your 30s is a good decision because by this age you would be financially prepared to pay for the down payment. By availing of a home loan at this age, you will get more time to repay it, and thus the EMIs will be lesser. Plus, by this time, you will be secure enough to make big financial moves. Last but not least, your house will get more time to gain price appreciation.
At V. K. Lalco Group, we understand that buying a home is probably the biggest single purchase made by most Indians in a lifetime. We also understand the sentimental value of a home. We build spaces that are focused on YOU – the person who will make the houses we build into HOMES. Our upcoming projects at 1 bhk project at Dahisar and our new 1 bhk project in Borivali have attracted a lot of people in their 30’s for the balance we offer between cost, quality, accessibility, and style.
If you have been thinking of buying a home and speculating if this is the right time, then we hope this article sheds some light and helps you go a long way in your journey to buy a home.