Is there a right age to buy a home?

We have so often heard that age is just a number and a house is just an asset – but this is not quite true. Age and fixed assets have an intertwined relationship, each dependent on the other. A house is probably the most expensive possession that one ever owns in his lifetime. This obviously requires meticulous planning and saving. The decision is also dependent on several other factors like income and savings, the city in question, the size of the family, the rationale behind the purchase, etc.

Let us explore the pros and cons of buying that dream house vis-a-vis pertinent age groups.

AGES 25-30:

Saving for a period of four to five years provides sufficient time for this age group to bring to reality their dream home. For this, it is obviously mandatory to start earning, and saving, early from the early age of 20 or 21. One will likely be able to accumulate enough to settle for down payment of a smaller house, which can be upgraded at a later stage. It is often prudent to invest in an under-construction property that has a pre-EMI period wherein one has to service only the interest when the property is under construction.

Pros:

  • Ensures a strict financial discipline from a young age
  • Longer loan tenors reduces the burden of heavy EMI’s

Cons:

  • Can become a deterrent when it concerns shifting cities in pursuit of more promising career opportunities
  • Paying EMIs can take a toll on large percentage of the income, leaving little disposable income
  • Loan eligibility is usually lesser for this age group

AGES 30-45:

The big Indian wedding occurs usually within this phase and a home becomes a necessity. A bachelor’s shack is no longer a valid entity at this point of time. One needs to think of a larger abode. In fact, this is the best age to buy a home owing to the stability in earnings and one’s career on the whole.

Pros:

  • Approximately 10 years of savings add up to a substantial amount to purchase a home in most cities
  • One is eligible for a larger home loan amount

Cons:

  • Need a bigger home keeping in mind the growing family
  • Reduced risk appetite

AGES 45 AND ABOVE:

This is the age group where the kids have grown up and often moved or on the verge of moving to other cities to pursue higher education. It is also around this time that the head of the family has attained the peak of his professional career. It is probable that he already owns a house and is looking to invest in a second one. Significant expenses looming at this phase are generally college education, ageing parents, health ailments, marriage of children and more. However, if one does not own a house in this age group, it is highly recommended to buy one before retirement to put off unnecessary rent expenses.

Pros:

  • Mature buyers recognize their needs well
  • Larger selection of homes to keep pace with increased budgets

Cons:

  • Limited money to spare, retirement at the door
  • Limited home loan amounts granted owing to age
  • Shorter time spans to repay EMI’s

TRUST THE BEST

We have so often heard that age is just a number and a house is just an asset – but this is not quite true. Age and fixed assets have an intertwined relationship, each dependent on the other. A house is probably the most expensive possession that one ever owns in his lifetime. This obviously requires meticulous planning and saving. The decision is also dependent on several other factors like income and savings, the city in question, the size of the family, the rationale behind the purchase, etc.

Let us explore the pros and cons of buying that dream house vis-a-vis pertinent age groups.

AGES 25-30:

Saving for a period of four to five years provides sufficient time for this age group to bring to reality their dream home. For this, it is obviously mandatory to start earning, and saving, early from the early age of 20 or 21. One will likely be able to accumulate enough to settle for down payment of a smaller house, which can be upgraded at a later stage. It is often prudent to invest in an under-construction property that has a pre-EMI period wherein one has to service only the interest when the property is under construction.

Pros:

  • Ensures a strict financial discipline from a young age
  • Longer loan tenors reduces the burden of heavy EMI’s

Cons:

  • Can become a deterrent when it concerns shifting cities in pursuit of more promising career opportunities
  • Paying EMIs can take a toll on large percentage of the income, leaving little disposable income
  • Loan eligibility is usually lesser for this age group

AGES 30-45:

The big Indian wedding occurs usually within this phase and a home becomes a necessity. A bachelor’s shack is no longer a valid entity at this point of time. One needs to think of a larger abode. In fact, this is the best age to buy a home owing to the stability in earnings and one’s career on the whole.

Pros:

  • Approximately 10 years of savings add up to a substantial amount to purchase a home in most cities
  • One is eligible for a larger home loan amount

Cons:

  • Need a bigger home keeping in mind the growing family
  • Reduced risk appetite

AGES 45 AND ABOVE:

This is the age group where the kids have grown up and often moved or on the verge of moving to other cities to pursue higher education. It is also around this time that the head of the family has attained the peak of his professional career. It is probable that he already owns a house and is looking to invest in a second one. Significant expenses looming at this phase are generally college education, ageing parents, health ailments, marriage of children and more. However, if one does not own a house in this age group, it is highly recommended to buy one before retirement to put off unnecessary rent expenses.

Pros:

  • Mature buyers recognize their needs well
  • Larger selection of homes to keep pace with increased budgets

Cons:

  • Limited money to spare, retirement at the door
  • Limited home loan amounts granted owing to age
  • Shorter time spans to repay EMI’s

TRUST THE BEST

At whatever age you invest in your dream home, it is mandatory for you to invest with trusted and well-known developers like Arrjavv. This Group respects the critical decision of home-buying for you. Having curated an exquisite selection of properties in prime locations, this leading real estate company in eastern India caters to every need and budget. The Group takes pride in maintaining its rigorous standards, consistent innovation, unique architecture and engineering marvels, built through years of experience and an unwavering focus on quality.

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