Youngsters buying a home in 20s – in one’s career, has several advantages. We offer a list of dos and don’ts for young home seekers, to realize their dream of owning their own home
Youngsters buying a home in the 20s is a wise decision
- Longer loan-tenure eligibility.
- More tax saving, due to income tax deduction benefit available against home loan interest and principal repayment.
- Risk appetite is higher, for which the rewards can be better.
- A youngster has more time, to balance other financial objectives.
Planning aspects that a buyer in his/her 20s should keep in mind.
- Loan planning: Consult at least two to three reputed banking institutions, to understand the nuances of the home loan process, including documentation, interest, repayment terms, tenure implications, EMIs, etc.
- Project location and connectivity: Work hours tend to be longer at an early career stage and thus, connectivity to core the business districts is important.
- Social infrastructure: Nearby retail, dining and entertainment options must be considered, given the fact that youngsters give significant importance to recreation avenues.
- Clear titles and other documentation: A younger buyer may need extra guidance on the various legal aspects of a property, such as land titles, statutory approvals, RERA compliance, etc. A consultant or expert can help evaluate the feasibility of a project in this context.
Benefits of buying a home in the 20s
- Future investment: It allows youngsters to invest in their future, as it provides them with an asset that can be sold, when they are ready to move on.
- Youngsters tend to learn better spending habits: It changes the young buyer’s decision-making process, as they learn how to save and spend money in the most effective and efficient manner.
- Tax benefits: As home buyers get tax credits, youngsters can use it for lowering their tax liability.
