Everybody dreams of owning a home which they can call their own with pride and joy. Gone are the days when houses were purchased only when you got settled. These days youngsters are doing something completely different. They are looking forward to buying homes early in life. As this is the biggest investment, youngsters are trying to start early. But is it easy to invest so much at such an early age to own a home? Yes, it is if you plan prudently from a young age.
7 TIPS TO BUY A HOUSE IN INDIA AT YOUNG AGE
- Give an early start to your financial planning :
It is better to start early if you have plans of Buying a House in India in the future. Youngsters get more time to plan and to pay EMIs. This process might look difficult as it is not possible to pay huge EMIs just after getting a job. But it is not impossible either. The right kind of financial planning can guide you to control your expenses and save money too. Stop wasting money on things that you don't need or things which have very little value. Opt for local home brand stuff rather than big and foreign brands to save money and to support small brands. Keep a track on your expenses and your total income through digital applications on your phone to understand your balance sheet.
2. Invest along with saving money for a better financial plan :
Do you know you can easily save more money? Well the money that you are saving can grow on its own if you invest it properly. You can definitely invest in mutual funds. They can give you a return of 10-15%. Other than this you can put your money in a recurring deposit which gives a 7-8% per annum interest compared to just 4% per annum for a savings account. Fixed deposits and recurring deposits are risk-free whereas mutual funds are unpredictable.
3. Keep a good credit score :
To get loans easily and with lower interest rates, always keep your credit score above 750. These days almost everyone uses credit cards to live a good life. If you want to maintain a good credit score, purchase more through the credit card and always clear your outstandings on the right time. In this way, your score will remain above 750.
4. Realistically research your dream home :
Research is important before buying your dream home. That not only guides you to save the money, it also gives you the knowledge about the investment you are going to make so that you get good return from that. Research for the best places to buy a house that fits in your bill, look at the area, amenities, etc. and make sure you put in your money in the place where your heart belongs.
5. Keep your career on track :
It is important to maintain a good career if you want to buy a house. You have to work hard to maintain a job so that the cash keeps flowing in and you are able to pay the home loan too. Earning good money is crucial. So try to improve your job position. Always try to gather good experience in your field. You can do degree or diploma or certificate courses along with your job to increase your value.
6. Take a home loan :
You want to buy a home in India at an early age, that is really a great step. However, you might not have that amount of cash so it is better to opt for home loans that the banks offer. There are many banks that offer good home loans. Check with them. Before rushing into it, first plan properly like which property you are looking to invest in. Then know about the property value. Based on that you will know how much you have to pay as your down payment and how much EMI will be set per month. Know your interest rates that would be levied every month. Set the time of the home loan for 20 or 30 years based on which the EMI would be set. With a good credit score you will be able to negotiate with interest that would be added in.
7. Tax benefits to opt for :
With home loan repayments comes tax deductions. Under Section 24 of the Income Tax Act, you can claim upto Rs 2 lakh every financial year on the interest paid on home loan. Under Section 80C of the Income Tax Act, you can claim upto Rs 1.5 lakh every financial year on the principle repaid.
Buying a home is one of the most important decisions you can make in your lifetime. Before you start house-hunting, it is important to think about how this decision may affect your future and whether there will be any kind of long-term consequences to deal with. Buying a house in India is a good investment. Not only you are securing the shelter where you will feel secured and safe, it will also provide you future benefits, like you can rent out your house to get money which will help you at times of problems. So starting off early only helps you plan well. 