Buying a home is certainly one of the most important decisions of your life. And, having one even before you reach the age bar of 30 is excellent. Many young individuals nowadays think of investing in a property at an early stage of their career, so that they can earn the long term dividends.
According to a young IT professional and a proud owner of a 2 BHK apartment at Royal Enclave in Rajarhat, buying a home under 30 gives an opportunity to enter the market early. It’s like, you have to spend a lesser amount than what you have to pay 10 years down the line. No wonder buying a property at an early stage gives you a better investment opportunity.
However, you have to consider several factors if you plan to buy a property at such an early age. Here’s a look into these factors that you can’t ignore while buying a home.
Why Do you Plan to Buy a Home
This is the prime consideration that must be taken into account while buying your home. Different people buy property for different reasons. Many people just want to buy it out of fascination. If you also fall to this category, refrain from buying one. Figure out in the first place why you are buying the property. If you want to use it as an investment option, make sure that you get it ready for steady cash flow in the form of rentals. This way, you can make a handsome earning that can be later used for the repayment of your home loan.
Fix your Budget
When it comes to buying a property, funding or the budget is one of the prime concerns. Get an idea of what you can spend way in advance. You probably have stared your job just a year or two. Quite obviously, you might not have much savings. Obviously you will avail a home loan. But, keep in mind that any misadventure might lead to a financial disaster. So plan on buying a property that you can afford without pressurising yourself. At the same time, buy your home in a proper locality. It might cost you more, but at the same time will give you better return on investment.
Can You Pay off the EMIs
At an early age, people love to experiment with the career prospects. There’s high chance that in the process you might get jobless and end up having no income source. In such a situation, you can hardly pay off your EMIs. It will let you in an eternal debt trap. However, if you are in a stable job or have a secondary income source, you can make a buying decision. Try to make as much down payment as possible to keep your EMIs under control. Make sure that the EMI figure should not exceed 40 per cent of your monthly income. Apart from the EMIs, also keep in mind your future financial commitments such as property tax, maintenance costs, repairing costs, furnishing, paint and decoration. And, this will aggregate to a significant amount, which you won’t be getting in a home loan.
Last but not the least, be wary of the tax exemptions offered by the government to the homebuyers. You can also avail Pradhan Mantri Awas Yojna while availing the home loan and can get a significant reduction on the interest rate. Also, get to know about the tax exemptions available to the homeowners as well as the buyers. This way you can save a great deal of expenses, otherwise required as tax.
Buying a home and that too at such an early age surely brings an adrenaline rush to the nerves. But, don’t plunge into the market without a proper planning. Having a property gives you security but refrain from going beyond what you can’t afford. It’s better to invest in the property of affordable segment that comes with the benefits of gated complex. You can check out the 1/2/3 bhk residential apartments in New Town for smart investment.
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