One of the biggest financial decisions one makes in their life is that of buying a house. A big part of purchasing a house is the feeling of being independent and responsible, which is what most young people seek. While most people wait to buy or invest in a house until after they are in their 30s or 40s, we suggest you invest while you’re still young, and in your 20s. The main reasons for this are that one, when you are young, you have a steady flow of income without any accountability, and two, taking home loans at a young age is beneficial.
Now, you may ask – how so? To answer this question, below are a few reasons showing you why buying a home at a young age by opting for a home loan is beneficial:
Longer the tenure, lesser the EMI amount
Your age is one of the most important factors when it comes to deciding your loan tenure at the time of taking a home loan. The maximum home loan tenure is 60 years minus your current age. Hence, the younger you are, longer the home loan tenure you will receive. Also, since a longer tenure means lesser EMI (equated monthly instalments) amounts, you won’t have to worry about getting lesser income to spend as well. It is both safer and wiser to pay off your home loan EMIs before your retirement so you can sit back and enjoy a peaceful retired life rather than extend working just to pay off your debts.
If you are a salaried individual, and fall in the tax paying bracket, getting a home loan would automatically get you multiple tax benefits. As the prepayment of home loan comprises of 2 different components, i.e. the home loan interest rate payment and the principal repayment, the tax benefits on these are claimed as tax deductions under different sections while filing the Income Tax Return. Tax benefits on a home loan are governed by different sections of the Income Tax Act, i.e. Section 24, 80C and 80EE.
Buying a house in your 20s is an investment. While most people think of investing only after they have bought their first house, you could start much sooner than you think. It will benefit you in many ways. For example, after purchasing a house as an investment, you can put it up for rent. By doing so, you’ll be able to earn profit off your investment as soon as you find tenants.
Having your own home not only secures your finances, it also helps your money grow as the value of the property increases. Psychologically, owning a home often imparts a sense of stability and permanence. Being a homeowner in a neighbourhood of other homeowners also leads to a sense of being a part of a community. Also, the desire to maintain a stable environment can be an emotionally satisfying experience.
Taking a home loan is much easier now because of the Pradhan Mantri Awas Yojana scheme, under which, first time home buyers have the benefit of getting home loans at cheaper interest rates.
Need there be more reasons? Get going and purchase your first dream home now by applying for a home loan online with us!