Are you tired of hearing your parents and grandparents talk about how they invested in “safe” assets like savings accounts, mutual funds, and insurance when they were our age? Don’t get us wrong, those are all great options for building long-term wealth. But what if we told you there’s another asset that could be even more valuable in the long run? We’re talking about buying a home. Sure, it may not seem as flashy or exciting as buying Bitcoin, the latest tech or planning a killer vacay, but trust me, it’s just as important.
When you’re young, buying a home can be one of the best financial decisions you’ll ever make. It’s an investment that can provide you with a stable and secure future, something that’s particularly important in today’s uncertain world.
Now, we know what you might be thinking: “But I’m not ready to settle down and buy a house yet! Plus, I don’t have enough money for a down payment.” But hear us out. Buying a home at a young age has a lot of benefits that you may not have considered. For one, it starts building equity right away, and as your income increases over time, your mortgage payments stay the same. It’s a tangible asset that you can live in and enjoy.
Plus, with India’s real estate market on the rise, your property is likely to appreciate in future. And while it’s true that buying a home requires a larger upfront investment than, say, putting money into a savings account, the long-term payoff can be much greater.
Over 400 million millennials live in India and we are a third of India’s population where 46% of the workforce lies between the ages of 40 and 25 with an annual spending power of US$3.6 billion.
Buying a home at a young age has many benefits, let’s dive into it:
Building Equity
It enables you to start building equity in your property. This is important as it provides a secure financial base to build upon, allowing you to take advantage of the market and purchase a property at a lower price than if you waited to buy it later.
Tax Benefits
As a first-time buyer, you will be able to take advantage of government incentives, tax benefits and lower interest rates. Not to mention, owning a home can help you build a strong credit score which can be beneficial in the future.
Banks Favour First-Time Buyers
Good news, securing a home loan in India has never been easier. With banks offering competitive rates and special home loan schemes for young professionals, it’s the perfect time to take advantage of the easy availability of home loans and make your dream of homeownership a reality. Plus, many of these loans come with lower interest rates, flexible repayment options, and an easy documentation process.
Provides a sense of stability
Owning a home can help you avoid the rising cost of rent and provides a sense of stability and permanence that renting can’t give you. Plus, as a young homeowner, you have the advantage of having more time to pay off your mortgage, which can help keep your monthly payments low and make it easier to budget and save for the future.
Things To Keep In Mind When Buying A Home In the 20s
Choosing the right property and developer is crucial, especially in your 20s. Location and affordability are important but don’t forget to opt for a Grade A developers like Lodha, Godrej, Oberoi Realty, Mahindra, among others. Make sure they have a good reputation and delivery track record. And don’t forget to check for legal and government approvals and additional costs such as registration charges, stamp duty, and home insurance.
It may seem like a lot of work, but taking the time to carefully research and choose the right property and developer can ensure that you’re making an informed investment.
In conclusion, owning a home in India is a step towards financial stability and independence, especially for someone in their 20s. But remember, buying a home is a significant investment and requires careful planning and research. So, take the time to research to ensure that you’re making a wise investment.
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