Buying a home in India is the biggest financial decision that majority of people make once in their lifetime. It is a huge decision wherein you are likely to invest your lifetime savings to buy a dream home for yourself. With the real estate prices soaring high, it is now becoming more difficult decision to decide whether to invest or not in the properties in India.
But, you can witness huge transformation in house buying pattern in India. Earlier, people in late 50s used to wait for their provident fund money to buy a house. Most of the investment in properties used to happen before few years to retirement.
But, if we see the scenario today, things are changing. People are ready to invest in property as soon as possible and most of the young generation is investing in real estate during their 20s only. Some of them are buying the property in remote areas, so that the area develops by the time they grow some old.
The main reason behind such huge change is the rising levels of income and physical savings. Also, nowadays, people are happy to spend their life with a home loan for most of the years of their lives.
Real estate developers in India are taking advantage of this situation and concentrating on the youth aggressively. Also, the expectation of the people from a property have also shifted swiftly. Now, the house being leak proof is not the only criteria, but they need a gymnasium, clubhouse, small parks, and many other facilities in a property.
If you are looking for a property in Bangalore that can meet your expectations in terms of all the modern facilities, then you should consider looking at the properties offered by Indya Estates. We at Indya Estates have designed all our properties keeping in mind the requirements of all age groups.
So, here is why you should consider investing in a house in a young age:
- You are young:
It is amazing to be young and independent. If you are in your 20s and having sufficient income, you can make your own rules, manage your finances independently, and spend wherever you want. But, remember this shall pass very soon if you have certain goals in mind about how you want to spend your life.You cannot just spend living your life in a rented house all your life and in young age, you can effectively manage your finances by cutting down certain expenses to save for the down payment for buying a home. It will get difficult as you will grow older since you will have larger obligations in the later years of life.
- Easy availability of home loans:
Gone are the days, when getting a home loan was a big challenge. You had to run from one door to another to get all the documents in place for getting the loan approved. The banks also had multiple checks before advancing a loan to anyone.But, nowadays the financial institutions are coming up with newer loan products regularly to attract the home buyers and the loan application and approval process has been streamlined. With the introduction of online application process, the loans are easily available and timelines for getting the loan approved have also fallen drastically.Even though, the banks still have a due diligence process in place for approving the loan. But, unlike earlier, it has improved and everything is being done online for the convenience of the customers.
- The long tenure of home loan lowers the EMIs:
If you buy a home in your 20s, you will have a longer time to repay the loan which will reduce the amount of EMIs drastically. For the calculation of EMIs, the amount of loan taken and the time required to repay the loan is taken into consideration. Also, in India, usually 65 is the age for retirement and most of the banks prefer to close the home loans before that age. So, the later you plan to take a home loan in life, the bigger will be your EMI.Also, banks prefer to give loans to young people and approve their loan quickly. This is because when you are in a young age, you are just beginning your career and are more likely to see growth in the coming years. Hence, their future viability to pay home loan easily is more than the people in their 40s or 50s.
- Lesser responsibilities:
When you are in your 20s, you do not have any such big family responsibilities other than your own parents. You are young and carefree. But, as you grow, the responsibilities start growing. People get married and then have kids, which start adding a burden on their finances. With each new member in the family, your expenses are likely to increase which will give you lesser amount to keep aside for savings and EMIs.
- It gives you an opportunity to invest in another house:
When you are young, it becomes easier for you to repay the outstanding amount of the home loan in the later years of life with your accumulated savings. This also gives you an opportunity to upgrade to a bigger house or better located house in the future by selling your old house. This is being done by most of the younger generation these days.
- Gives longer time for the appreciation of property value:
Real estate in India is a great investment in terms of appreciation value. Almost, you can see good appreciation in value of the properties almost everywhere in the country especially, in case of the properties in Bangalore, Mumbai, Delhi, Hyderabad, other major cities on India. Since, majority of the younger generation prefers to buy homes in these cities. Hence, they can see huge appreciation in their investments.Also, the earlier you buy a property, the more longer time it gets for appreciation in value. You can even witness a yearly appreciation of 15 to 20% in properties that located at well-known places in the cities. Hence, investing in a house at young age gives you an opportunity to enjoy this huge appreciation.
- The young married couple get home loans even more easily:
The banks refer to give home loans to young married couples even more. Their eligibility is becomes even higher when they take a joint loan because the banks get an assurance that there are two steady income source to repay the loan instead of only one. This reduces the risk for the banks. Also, taking a joint home loans is even more beneficial for the home buyer since, it becomes easier for them to repay their home loan quickly and focus more on the savings in later year of their lives.
- No wastage of money in rents:
If you plan to rent a house, you are spending a major portion of your salary on rents that does not even create any asset for you. So, it is more advisable to buy a house than rent so that your hard earned money is invested in an asset owned by you rather than wasting that money in rent.It is a more sensible decision to pay monthly EMIs rather than just spending your money in rent which is just an expense that will not give you anything in return. By spending your money on EMIs, you are investing in your dream home that is also an appreciating asset.
- Income tax breaks:
The interest and the principal amount paid in respect for home loans is eligible for deduction in your income tax returns this helps in reducing your taxable income and pay less in taxes. This tax break is specifically provided by the government to encourage the people to buy their own homes.
- You can even plan for an early retirement:
Once you are done with the EMIs of your home loan, you can start saving your money for retirement which will even allow you take early retirement. If you take a home loan in your 20s and repay by 40s, the biggest financial burden of your life will be then finished by that age.
After going through the above-mentioned points, there are no doubts in the fact you should think about buying a home in India in early years of your life. A little but of financial discipline is required for handling your home loan to spend a quality life in your own house.
Why Indya Estates?
We at Indya Estates offer best residential properties in Bangalore. We ensure to deliver well built, quality construction, world class architecture and all the modern amenities to the customers through our properties.
Our projects are well-connected with the city and provide all the amenities like gym, swimming pools, park, etc. in the society itself.
Also, we at Indya Estates keeping in mind the rights of the customers have incorporated of all the rules and regulations of the RERA Act to ensure only fair and transparent deals.