Buying a home is one of the most long-cherished dreams of a large number of people in India. It should come as no surprise as a home is not just a property but a lifetime achievement for most of us. Since childhood, we have been told to get a house of our own as it signifies stability and security. And when it comes to buying a house, it asks for years of planning and saving. So, here comes a question- what is the best age to buy your first home or when do you buy a house.
The right age to buy your first home
According to experts, there is no set age to buy a home. There are lots of factors that determine the right for a person to buy his first home. In actuality, the homebuyer must examine all these factors to check whether it is the right time to buy the home or not.
When do you buy a house?
Buying a home can be advantageous for people at any age, young or old, as long as the conditions are right. You might be prepared to buy when at least when you:
- Can easily manage the monthly loan installments and other periodic expenses of homeownership
- Can get approved for a home loan at attractive interest rates
- Roadmap to keep the home long enough to recover transaction costs from buying and selling, as well as recover from any price slumps
- Can face the risks, including unforeseen maintenance expenses or your home losing worth in case of a poor market scenario
- Can easily take the responsibility of owning and maintaining a home
None of these aforementioned points are is meant to indicate that you’re negligent if you don’t buy a house by a specific age. Owning a home can be costly, time-consuming, and frustrating exertion. However, renting is known to have its own set of challenges, but it’s considerably simpler to pack up and leave when your only compulsion is an 11-month rent agreement.
Reasons for Buying at A Young Age
If you are at a young age and are looking to buy a home, it is necessary for you to know the possible benefits of getting it early.
Thinking that things go well, owning a home is a roadmap to augmenting your net worth. The “compulsory savings” of your monthly payments helps you create equity in the property, which you can use for another property or other requirement later in life. Rather than giving 100% of your monthly house rent to a landlord, it is better to save a part of each payment.
There is no surety that your home will increase in value over time, but that is what happens mostly—particularly over the long term. Real estate can help protect against inflation, assuming that your property maintains pace with increasing property prices. Particularly in potent markets, price appreciation might lead to wealth buildup. But it’s recommended to buy a property as a “home” that you love to live in—not as an investment.
Your Own Place
When you own a home, you are its owner. You can modify the look or the design to match your style, make enhancements that increase value, and develop stronger roots in the society you live in. You don’t need any kind of permission from a landlord, and you don’t need to untie all of the best things you did in order to get your security deposit back.
Reasons for Waiting
If you’re not in hurry, that’s completely acceptable. Waiting to buy can benefit in many ways. Making a home your own and moving can be tiresome, and you typically pay transaction costs every time you sell.
As you age, you get a clearer picture of your perfect home. The future is always hard to determine, but you get more clarity on various important factors as you age:
- Your office location, or your skill to work remotely
- Your income that can be used for housing payments
- Your family size
- What you actually need, and what you’re ready to live without
Not many people earn more when they get older. As you get into earning more, it’s cooler to buy precisely what you want—without making big detriments. Rather than being “house poor” and managing your property between the age of 20 and 30, you can utilize that time and accumulate a considerable down payment, traveling, or doing anything else you wish.
From the given information, it becomes clear that there is no average age to buy a house. The decision to buy a home depends on several factors that must be considered before moving further. By keeping all these factors in mind, you would be in a better position to take the right decision that would help you enjoy your life peacefully and happily.