No age is right or wrong to purchase a home. However, it’s intelligent to determine where you live before you decide to buy or not. A purchase using home loan is the largest investment in the lives of many people, which can benefit you or harm you financially as an owner. It affects your quality of life most significantly.
When Should You Buy?
If the requirements are right, purchase of a home may be advantageous to you at any age, be it young or old:
- Will make monthly payments and other recurring home ownership expenses
- Can be accepted (or better still, pay cash) for a good loan
- Plan to maintain your home as long as you can recover transaction costs from purchase and sale and recover from price declines
- Can take risks, including surprise maintenance or loss of value in a poor market
- You are equipped to take care of and keep a house
None of this implies that if you don’t purchase a house for a certain generation, you are reckless. The possession of a home can be a costly, timely and stressful effort. Renting comes with its own set of challenges, but when your only responsibility is a six-month home loan, it will be much easier to pack and go.
Reasons for Buying Young
You will have some advantages to get a start early in your time if you want to buy when you’re young and have the resources to do it.
- Building wealth: If things go well, buying a home is a way to raise your net value. The “savings” from your monthly payments allow you to generate equity, which you can invest later in life on other assets or other needs. You save a portion of each payment instead of making 100 percent of your monthly home payment to a landlord.
- Appreciation of prices: There is no guarantee that your house gains value, but this always happens—in the long run. Hedging will help avoid inflation if your property keeps pace with rising prices. Price appreciation may contribute to your wealth accumulation, especially in strong markets with a wealth of potential. But buying a house as a “home” in which you want to live is better, rather than as an investment.
- Your own place: you are in charge when you own a building. The look or layout can be customized to your design, enhanced, added value, and deeper roots in the culture you live in. You do not need a landlord’s permission and do not have to change all the major stuff that you have done to get a security deposit back.
Reasons for Waiting
If you don’t feel rushed, it’s all right. You will pay off in different ways waiting to order. Making a home for yourself and moving around can be a hassle, plus any time you sell, you pay transaction costs.
- More assurance: You build a better vision of your perfect home as you grow older. The future is still unpredictable, but with your age you will gain insight into several factors:
- Your office or your remote working skills
- Your profits for the payment of home loan emi
- The family size
- Financial strength: Many people earn more when they get older. It is easier to purchase just what you want as you start your older years, without significant sacrifices. You can spend these years saving on a major home loan emi, traveling or whatever you want instead struggling with your property in your 20s and 30s with high home loan interest rates. Moreover, over those years, you can build credit to increase your chances of getting the best loan you can.
At What Age Can You Buy a Home?
Most states in India need to have a majority of age (typically 18) in order to enter into legal contracts for home loan eligibility. Both parties have to sign a contract for the acquisition of property and a loan. But as long as anyone of legal age signs the documents, you will probably own property as a minor.
If you’re interested in getting started early, get guidance from local experts who can explain your choices and direct what’s best. You can own property in a custodial or trust agreement with an adult or have an adult pass ownership. There may also be other options and a trained real estate lawyer may help you decide the alternatives. Before going ahead, cross check the above points mentioned for further clarity.
Jeff Morgan is currently associated with NetworksGrid as a technical content writer. Through his long years of experience in the IT industry, he has mastered the art of writing quality, engaging and unique content related to IT solutions used by businesses.