Buying a home is one of the biggest dreams that exist in Indians. For us, it’s a matter of pride and prestige to call it as “our own home”. Buy vs. Rent doesn’t stand a chance as most of us want to own our home.
However when it comes to buying, we don’t buy a house by choice. We do it because of a certain cause. It can be anything from shifting for a bigger home, marriage and also for children etc. If you want to be one step ahead and plan for your house, you definitely will need to have a good financial strength to handle the home loan.
Here, below we have listed few pros and cons when you plan to buy your home early. This should give you a good visual of whether to buy early or no.
- Buying a house early in your career kind of gives you a guarantee that you will be debt free many years prior to your retirement. Yes, for eg: If you buy a home at the age of 25 and take a loan for 20 years*, it means you will be debt free for more than a decade. That can help you plan for your retirement too.
- Buying a loan early gives you more options when it comes to the tenure. Yes, when taking a home loan prior to 35 years old, you can get loan tenure of up to 25 years* at ease. But when you take a loan when you turn 40 or more, it gives you not more than 10-15 years* to pay off the loan. We all know that when the home loan is for a short tenure, you end up paying more interest and EMI.
- Assuming that the property rates will run as per the current standards, it will go upwards decade wise. This falls in your favor when you have bought the property at an early age. Yes, a property bought when you were 30 years old should be more* when compared to 10 years later. This means you get to purchase the property at a lesser rate if bought early.
- One major con here is that buying a home at an early stage of your life means you won’t be able to commit to more financial goals. Yes, since a majority of your income already goes towards the home loan, there is hardly any amount remaining to invest in other opportunities.
In India, buying your own home is not only a sense of pride but also a matter of providing emotional and financial security to your family. Hence, whether you plan to buy your house early or late, please keep in mind your financial strength at the time of buying and your financial goals. Bring a balance between them and it will benefit you in the long run. To find out about how to apply for a home loan