Happy that you have completed your education! Elated that you have got your first offer letter! Excited to build a life of your dreams in exotic locations like Pacifica Hillcrest-a swanky residential real estate in Hyderabad that combines both-the lavish lifestyle trends and affordability. Everything seems a cinch, right?
However, when the time comes to actually make one of the biggest buying decisions of your life; you may start wondering if the time is right, if it is not too early to get strapped down by the home loan EMIs. After all, you are still in your 20s, correct? Well, the way we see it; 20s is perhaps the best time to buy a home. How? Let us see!
Inflation-The biggest adversary
Looking at the property prices in Hyderabad will illustrate this point quite clearly. The real estate market in the city is on a steady upsurge. There has been an increase of 32% in the sale of flats in Hyderabad from 2013 to 2017. The prices for the residential properties are steadily moving north.
For example, In Gachibowli area, the price per sq. ft. has gone up from Rs. 2800 in 2009 to Rs. 5800 in 2019. Similarly, In Nanakramguda area, the prices have gone up from Rs. 3485 per sq. ft. in 2015 to Rs. 6700 in April 2019.
Hence, you can see for yourself that early entry is the best as you can easily fight the inflationary trends before they begin to balloon up the market prices of the assets.
Rent Vs. EMI
During the early days, paying a rent seems an easier and more economical option than servicing home loan EMIs. However, if you look at the long-term picture, if you act on a strict financial discipline, you will be able to pay off your home loan in about 10 to 15 years and own a home of your own.
Hence, paying rent is a pure expense while paying the home loan EMIs is an investment which is bound to provide you long-term benefits in future.
Less responsibilities on the family front
In the earlier stages of your life, the financial responsibilities on the family front are minimum. Hence, you can afford to divert a bigger chunk of your pay-cheques towards the repayment of home loan debt. In the later years, buying a house can be a difficult task since you may need money to raise your children, support your ailing parents, or create a retirement corpus for yourself.
Income Tax deductions
You can claim certain income tax deductions under Section 24 and 80C of The Income Tax Act in connection with your home loan and the house property that you own. It is an efficient way to plan your finances and reduce the tax burden.
Home Loans from Bajaj Housing Finance Limited is there to guide you with the process of buying the first home of your life. Its competitive interest rates, easy documentation process and flexible repayment terms will make your home buying experience convenient and hassle-free.