Right Age to Purchase a Home & Keep It Under Your Budget

Purchasing your own house is a dream of many. As we are talking about the right age for purchasing a home, well let us tell you that there is no such thing as purchasing a house at the right age. It totally depends on the individual’s income and bank balance. However, if you start earning at an early age then there are certain measures you can take to make this dream come true at an early stage of your life.

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Early Savings is the Key

Early start for anything is better as it keeps you ahead of almost everyone around you. As per the experts, if you think you can afford a house purchase then doing early age is crucial. When you start earning at an early age then you must start saving a part of your monthly income to collect the desired amount that you can invest later in making the downpayment for your dream home.
Inflation is your biggest enemy when you think about purchasing a house. If you intend to purchase a house worth Rs 30 lakh, an inflation of 5% would increase its value to Rs 53 lakh in the next 10 years. This is why, when you start saving at an early age, it can turn out in your favour when you plan on investing in your dream home.

Investment Options Available

Saving your money is one side of the coin however channeling it to invest and let it grow is another. There are various ways you can use to invest and let it grow itself. Since there are many options out there for you to invest your money and get decent increment with time, however, it is advised to learn about the terms and conditions properly.
Be it stock market, crypto or mutual funds, all of them are subject to market risks but with a deeper knowledge of the market and learning about the risks related to it, you can start investing at an early age and get decent returns.

Compare Home Loans

Apart from looking for the type of home you want to buy, it is equally important to research on the type of home loans provided by the banks. Every bank provides home loans but with different rates of interest.
Once you have found the right home loan option, look for the time you get to repay it and if you can afford it then it is suggested to pay the highest possible EMI per month to pay out the loan amount as soon as possible.

Keep Other Expenses in Mind

Apart from the down payment while purchasing a home, there are many other expenses involved that you have to make out of pocket. For instance, you have to pay for the stamp duty that varies from 5%-7%, registration fees, memorandum, electricity connection, interior design or modifications, water supply, etc. However, you cannot get an accurate idea about the out-of-pocket expenses, try and get at least an estimate so that you can strategize your other expenses as well.

Visit the Location

You cannot totally rely on the online information related to the property/home you are willing to purchase. It is because of the amount of investment you are willing to do, you should always visit the location of your desired.
Not just to make sure that it's there, you will also get the idea of the locality, nearby market places, fun spots, parks, etc. Once you have visited the place yourself, then you will be able to make the right decision whether you really want to purchase the property, if it is really worth the amount you are willing to invest or not.

Home Insurance is a Must

Once you have purchased your home and started living in it, it is vital to purchase a home insurance policy to protect it from any unforeseen incidents that might cause damage. Since you invest a whole lot of amount in purchasing a home and as you research before purchasing the right house, it is also advised to research for the right home insurance policy while making the purchase.
Everything is available online now a days, and you can look for the right home insurance policy online. You can compare different plans, calculate the premium amount using an online premium calculator, look at the claim settlement ratio of the insurance company as well.

Conclusion

Purchasing a house at an early age is a good idea but it can be very difficult as, in the end, it all comes down to affordability. Well, we have mentioned some ways that you can consider getting yourself financially ready to invest in purchasing a home at an early age. Also, once you have purchased a home protecting it with home insurance is vital.

Written By: PolicyBazaar - Updated: 08 March 2022
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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