Tuesday, 7 June 2016

Buying a Home While You are Young Makes Sense

Buying a home in your twenties might seem like a real tough decision, but if you think carefully it is a wise one. Waiting till you are in your 30’s is generally the norm, however if you consider it, it is also more difficult because you have more responsibility and more financial burdens.

While you may not be able to buy a home right your first job, but planning for the same will help you achieve the dream in the next 4-5 years. Since this is the time when you do not have to take case of any debts or have any long term financial obligations you can plan and invest with a focus on building a corpus for a home.

Since a home loan is huge financial commitment requiring discipline for a long term, it is advisable to try and make up as much in your own savings as possible so as to reduce the amount of debt you have to take.

Some key factors that your prospective buyers should bear in mind are:

·         Location- The most crucial element of your purchase. In case you have a job that entails a lot of travel or you have plans of moving elsewhere, it makes sense to buy or construct property in an areas where someone you trust can lookout for you in your absence. Also essential is the security and social infrastructure of the area keeping in mind your future needs.

·         Space Requirements- Keep in mind your future requirements and buy a home that will suffice as your family grows, don’t just focus on the number of rooms but also on storage space as more members need more storage space.

·         Comfort Zone- Make sure to buy space that makes you comfortable. Things like low roof, inadequate kitchen space, high counters, and lack of sunlight are some things that may not be noticed in the first go but are sure to bother you with time. Incorporate as many elements as you can within your budget.

·         Credit History- Ensure that you are not defaulting on any loans like auto loans or credit loans which will reflect poorly on credit score.

·         Budget- This is probably the most important aspect of your purchase, do not borrow more than you can repay under the assumption that you would be able to repay with you salary hikes, with time your expenses are also going to rise. Also keep in mind that everything need not be done in the first go, you can keep adding improvements as your budget permits.

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