Swastika has been a firm believer in a simple principle: do today what you will need to do tomorrow.
“Postponing the inevitable only increases the cost of the decision,” she says to her husband Sudipto time and again.
Sudipto, Swastika has always felt, is a happy-go-lucky guy, who tends to take life as it comes.
He loves to postpone taking action.
Swastika has been prodding him to buy an apartment in Kolkata for months, and Sudipto always promises to do it “next week.”
The cycle goes on.
Swastika has decided to take strong steps to get things moving as they are getting old and taking a home loan in later years means higher EMIs.
Swastika wants to buy an apartment before long as there are various advantages to doing so. Of course, there are certain difficulties too but overall it is better to buy a home as early as possible in life.
Let us discuss the pros and cons of buying a home (if you are staying at a rental home) early in life but before that let us know some more about Sudipto, Swastika, and their son.
A Nuclear Family Living on Rent
Sudipto and Swastika are from Belgharia in North 24 Parganas. However, they studied in Kolkata colleges and finished their education here.
Their working career started right here.
During college and university, they used to travel daily to and from the city, but this is no longer possible.
They have been staying at a rental home since they got married.
It is already a few years and they feel they must buy an apartment in Kolkata. Their son, Sourav, will begin school in about a year.
They must select a convenient location to buy a home. A place from where their workplaces and Sourav’s school is not very far.
A home that has all the child-friendly amenities, sufficient security measures, and a community of like-minded people.
Although they agree about the need to buy their own home, they have a slight difference in viewpoint as to the right time.
Swastika feels they should buy their flat as early as possible (she wants to feel the pride of owning a home and wishes to decorate as per her choice) while Sudipto thinks there is still some time for them. He does not want to be burdened by regular EMI payment right way.
After all, they are only in their thirties.
However, Swastika was not to let go so easily.
On a Sunday afternoon, Swastika and Sudipto had a long discussion on the pros and cons of buying a home before 40.
Let’s share with you the details of the discussion.
Keep reading.
Buying a Home in the 30s
The average middle-class salary has steadily risen in recent years, resulting in higher purchasing power. The younger working population has become more inclined to invest in property today.
The real estate industry offers many choices today. Additionally, Home Loan interest rates are quite attractive today.
These are the prominent reasons people in their 30s are now buying homes.
Most people in their 30s tend to have stable, well-paying jobs and are likely to have enough savings. This could mean a large down payment is not much of a problem. There is even the option to get a joint Home Loan with your spouse to reduce the EMI burden.
Buying a home at this stage gives you plenty of time to clear the loan and save for retirement. However, you need to consider other essential costs at this life stage, such as children’s education, a Car Loan, etc.
Benefits of Buying a Property in the 30s
There are several reasons for buying a home at a young age.
- Owning a home at a young age allows you to start building equity sooner. With property values increasing over time, you can accumulate significant equity. This can provide financial stability and serve as a valuable asset for future endeavours.
- Purchasing a home early in life gives you more opportunities to profit from property appreciation. Throughout the ownership duration, your property’s worth will likely increase.
- Homeownership brings a feeling of financial strength and freedom. It permits you to be rooted in the community, customizing your living space and enjoying the advantages of home ownership. This can add to self-awareness and a feeling of achievement.
- If you buy a home before you turn 40, you will comfortably retire your home loan in about 15-20 years. This happens because income grows progressively beyond 40. Early home loan payment offers financial comfort and the opportunity to spend on other essentials.
Benefits of Buying a Property Beyond 40
Although buying a property at an early age is generally beneficial, there are also certain advantages of delaying property ownership a little later in life.
When you are in your forties, you have already saved a considerable corpus. This will help you to pay a higher down payment and consequently, your EMI will be much lower/loan tenure shorter.
Postponing home purchase by a few years gives you increased flexibility to focus on your career. Often, career paths take people to a different city and they might decide to settle down in that city.
There are pros and cons of buying a home before 40 but it depends on the financial situation, career path, and various other factors. But it is usually better to buy a home as early as possible. Taking a loan in your 40s or later could hamper saving for your retirement or have you repaying EMIs while already retired, which might affect your financial stability.
