The ideal age to buy a home- Should you start young?

House happens to be one of the most valuable investments one makes in their lifetime. Sooner or later, one makes this decision and settles in their little abode earned with their hard-earned pennies. The purpose of buying a house can be different for all but everyone has to manage finance to buy something as significant as a house. One has to save, procure loans, and pay for those loans to get the title of the house in their name. Well, however complicated it may seem, buying a house is much easier now given the number of financing options available in the market. But the question that arises more often than ever is what would be an ideal age to buy a home? Is it advisable to buy a home when you are still young? 


Well, we shall figure that out after understanding the categories of people buying a house at different ages. 


  1. People who buy a house after 40.


This category of people has accumulated enough savings to buy a house. They aren’t much in need of a house loan or the need is quite less. Due to better savings people can avail properties at prime growing locations with better facilities. However, there are ample disadvantages to buying this late. Firstly, one cannot procure a long term loan on the house given their near retirement age. Secondly, paying mortgages at this stage may seem quite difficult since the individual starts saving for retirement. One should consider putting together savings for a house quite early and take this decision in their prime earning ages. 


  1. People who buy a house at 30-35 years. 


This category of people are newly settled into their marriage lives and are at the prime of starting their families. They are at the peak of their earning age and can afford to pay for home loans without burning their pockets. This is an ideal age to invest in the house of your dreams since you can avail yourself longer duration loans and have also gathered enough savings to pay for the down payment. 


One needs to have a mindset of owning a home by a certain age so that they start with savings with a healthy mindset. Without a goal, you won’t have a down payment even by 35. And that shall affect the standard of living in the future. 


  1. People who buy a house at 25-30 years. 


Ideally speaking, if a person has planned well, it’s one of the best times to invest in the property. Young individuals in India usually start earning at 21 years. By 25-26, they would have gathered a decent amount to pay for the downpayment. Besides, the pay scale would also have increased in the 5 years of their career span. This gives them freedom and a space of mind to invest in property without having to cut back on their expenses. 


Invest at this age if you can. You don’t necessarily need to buy off premium properties. Simply choose a location that’s emerging or property in any leading location. Even if you are staying with your parents, buy a property. Keep that house on rent and use the rent income to pay off your EMI. In some years, you can sell the property at inflated rates and buy a better and more suited property. 


Buying at an early age has an advantage over your credit scores also. You can easily avail better loans in future with a good CIBIL score. However, don’t hurry the decision. You need to plan for emergencies and loan repayment. And for that, you need a steady source of income and decent savings for 8-10 months that can help you survive and repay the loan in case of an economic crisis or losing a job. Be financially educated and plan for your future goals from this very day. 


Conclusively, the late twenties or early thirties could be a great time to invest in a home. However, you need to plan this step right from the day you start earning. This will give you enough cushion and comfort while making a big purchasing decision in your thirties. The earlier you start better your chances to avail loan facilities for a longer duration. 


What are your views on this? Do you think buying a home early in your twenties is beneficial? Let us know your thoughts in the comments below. 

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