changing times There has been an increase in the desire among the youth to buy their own house. Due to this, the demand for houses has also increased rapidly. According to a report, in today’s time, about 40 percent of the total home sales are held by the youth. In such a situation, if you are also planning to fulfill your dream of owning a house at a young age, then before finalizing the deal, do know its advantages and disadvantages.
Why do people want to buy a house at a young age?
For those who have just started their job, buying a house is a big challenge. This is because they do not have savings. Buying a home is a big financial decision. However, with the increase in earning, the youth feel that they can pay the home loan EMI instead of saving the rent money. Some people buy homes early because they want to secure their financial future. Many people feel that buying a house is the biggest financial goal of their life, so it should be completed early so that other goals can be taken care of later. Some people feel that they will find it more difficult to buy a home in the future as they will have more responsibilities. Some youths have good income and also have good financial support so that they can easily pay the monthly installment.
Benefits of buying a house at a young age
There are certain advantages of buying a home early in one’s career such as one can repay the loan amount in full before one’s retirement. On the other hand, by the time you repay the loan, the value of the property will increase a lot, so you will not have to worry about the debt after retirement. Second, living in a rented house has its share of problems. Staying on rent means you have to look for a new house every one year. If you take a home loan at a young age, then you also get a chance to save some tax, which includes income tax laws.
Under which the benefit of tax exemption is available. You can use this saved amount for other financial purposes or to prepay your loan. However, there are challenges and risks involved in taking a loan early in life.
Disadvantages of buying a house at a young age
People take loans at a young age thinking that their income will remain stable over the tenure of the loan. However, it can become difficult if you leave your job midway, even if for a while, and you will find it difficult to pay the EMIs. If R is unable to pay the monthly installment of his home loan for more than three months, then your loan becomes NPA. After this, the bank has various rights to recover the loan, which includes auctioning your property. This will harm your credit score. Apart from this, if you have not done complete planning about it, such as paying the down payment and other related payments, then the pressure of the loan will increase on you and it will be difficult for you to meet other necessary expenses. Also, one may have to move to another city for professional reasons, which makes it very difficult to pay the EMI and rent together.
proper planning is needed
If you want to buy a house along with starting a job, you have to see how ready you are for this huge financial responsibility. While it has many advantages, it also requires financial discipline. So before going this route, complete your planning on how you will pay the down payment, registration etc. For this a proper planning is needed.
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