We are Wealth Clinic Team
Investment in real estate is a decision that requires a lot of consideration and planning, especially when you’re putting your hard earned money. The trend to buy property in India at a younger age has increased significantly in recent years due to its long term benefits. Real estate investment comes with different benefits for different ages.
The dynamics of the real estate consumer buying cycle are constantly changing. Earlier, people in the middle ages often considered investing in real estate. In recent years, the younger generation has become equally interested in owning a home to live or to generate passive income from rent. Regardless of age, there are several benefits in real estate investment if it is done correctly with thorough market research. In this blog, we'll discuss the consumer buying cycle and its benefits in different stages of life.
‘Young’ is a relative term. 'Less than 30 years of age' is what we typically refer to as being 'young' in a property buying context. Purchasing a house at a young age largely depends upon your income. Here are some facts you must know and understand if you plan to buy a property at a young age:
Apart from tax benefits, if you can afford to buy a property at a young age, it ensures better life planning. To begin with, you will already have a house before the age of 30. If you end up purchasing a house on a loan by the age of 25, you will have completed your installments by the time you hit 40.
Unless the property is illegal or located in an area affected by crime or civic issues, property values rarely fall down. Therefore, if you have made a smart investment, you will end with an asset in your old age. Also, you would be spared the burden of paying EMIs, which sometimes force older people to stay in an unwanted job or limit their retirement options.
Property rates are always rising and the more you delay purchasing a home, the more you will end up spending on your home. However, there are certain benefits of buying a home in your middle age as well. It can be beneficial to purchase new house in your middle age if you have saved enough money. You avoid ending up paying EMIs on loans and can think about other investment options.
Buying a home earlier in life also means financial and emotional support from one’s spouse. Usually, when couples buy a home on a loan, they end up sharing the EMIs. Further, if you are buying a home for end use, it is better to get the opinion of your life partner on factors such as the design, location, and size. People often end up changing their homes after marriage to accommodate their partners.
Buying a home at a young age also gives you the advantage of planning for the future needs of your family. For instance, at 30 or 35 you would have a better idea about the needs of your family if you have a home, where your kids would be studying or where the spouse would be working, among others.
Thus, clearly, buying a property at a young age is beneficial. However, buying a home in your middle age also has many benefits. All one needs to keep in mind is their individual requirements and financial viability while planning a purchase. Ideally, if you want to live in one of the major cities of India, it is better to buy young if you are dependent on home loans. It gives you the option of choosing a longer loan tenure. In such a case you can easily base your decision on market conditions as well. For example, looking for a house for purchase in Noida is a good idea if you plan to grow your career and family in Noida or Delhi.
Before investing in real estate, it is wise to do complete market research and consult an experienced property consultant to know the market landscape in the respective area.
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