Why buying a home early in your career is a good idea
PremiumExperts explain the reasons why one should plan and go for a property investment early in their career
Buying a house is everyone's dream. Many people take a lifetime to buy their own house, some achieve it early in their careers. While young, most working professionals do not think about owning a home. However, if they start taking the baby steps towards owning an abode early in their career, they might own property very soon.
Experts explain the reasons why one should plan and go for a property investment early in their career.
Lower EMIs
When you are young, there is ample time for you to pay back the home loan. When you are in your mid-20s (20-25 years), you can easily avail of a home loan of 20 plus years. A time when you are unmarried, have no children, and have limited liabilities can turn out to be the best time to invest in a property.
Tax Benefits
The acquisition of property early in your career can support you in saving a significant amount of tax.
Suren Goyal, Partner- RPS Group said when you take a home loan to acquire a property, it is eligible for tax benefits under Section 80 C of the Income Tax Act. A home loan comes with multiple tax benefits for a homebuyer. When you are young and invest in an under-construction home, you are eligible for a pre-construction interest rebate and can claim a deduction on the interest paid on the home loan.
Asset Acquisition
Buying a property at an early age will make you the owner of a reliable and appreciating asset. Nakul Mathur, MD- Avanta India said at the back of your mind, you can rest assured that even if nothing works out, you have an asset to bank upon. If you purchase land in your 20s, its value will appreciate and the ROI will be exponential after 10-15 years.
Rent Saving
If you have decided to invest in a home early in your career, it can save a significant amount of rent for you. Annuj Goel, MD, Goel Ganga Developments said if you have decided to invest in a home early in your career, it can save a significant amount of rent for you. When you acquire a home, you can avail of a home loan and the money that would have gone into rent can be utilized in the form of Equated Monthly Installments (EMIs). With time, the amount of EMIs also reduces, the loan gets reduced, and eventually, you get your own home very early in your life.
A property investment early in your career is a wise decision, given the income range and other aspects are appropriately covered.