Homeownership adds value to sustainability and reliability. Buying a home is a keystone to wealth creation. Whilst you google ‘Flats for sale near me,’ let us help you with some of the basic steps you need to ensure while you make your dream home purchase of a lifetime. As you achieve one of the most monumental moments in your life by buying a home, you also gain a sense of achievement. This is because you have protected your clan members from the rainy day. To own a home is also a means to invest, which can give you fruitful results in terms of property appreciation and tax benefits. Thus, as we can see, owning a home covers the benchmark in every aspect of one’s life – socially and economically.
What are the advantages you reap if you own a house before 40?
1. Tax Saving
One of the significant boosts you get while you take a home loan is tax exemption under section 80C and 80EE of the Income Tax Act. You will not only save a large sum till your loan is completely paid off, but you will also be able to increase the amount of disposable income for your personal expenditure.
2. Long Repayment Tenure
When you are young, you are able to receive several benefits as you apply for a home loan. This is primarily in terms of a longer loan tenure repayment and reduced EMI payments. The age factor will also buy you the extra space to fulfill your other financial commitments.
3. Value Appreciation
We all know that the real estate value appreciates over time. Hence you would certainly not want to be paying for somebody else’s equity, would you? That is when the aspect of rent and lease comes into the picture. They are unsustainable over the long term as you are not creating an asset for yourself, but them! Also, the earlier you own a house, the better, as your property will have a longer duration to increase its asset value.
Smart Tips Guide to own your dream home before 40
Assess your Needs
Start off with the basics first –
- Ask yourself whether you want to own a 2BHK, 3 BKH, or a 4BHK.
- What is the carpet area you are looking for in terms of space? A decent area usually starts off with 1000 sq. ft
- What are amenities do you look forward to having in your apartment?
- Which location interests you and which one of them meets the needs of your family.
- What is your budget, and to what extent can you stretch it?
- Which builder and real estate agent you would prefer to make your purchase with.
Assess these aspects, which cover the overall dimension of owning your own castle. Take your time and cover all the grounds by doing sufficient research as this is a decision of a lifetime you would be making.
Start Saving Early
Ideally speaking, you must start saving as early as possible so as to make yourself capable enough to at least make a down payment before you own a home. A down payment of a minimum percentage of 20% is what you should be aiming for. This strategy will prevent you from paying more towards the interest and fees. It will also lessen your EMI burden.
Saving should not be the primary goal; rather, investing should be. Accruing a higher rate of interest by diversifying your investments is the best way to move forward. Explore the options which fall under your appetite i.e., lower risks and higher returns. Ask yourself if you are ready to go beyond the traditional way of depositing your money into the savings account. Increase your appetite by investing in stocks and mutual funds. Diversify your investment portfolio through SIPs. These steps would then shorten your time-period to make your dream home purchase.
Build a Healthy Credit History
It is absolutely essential for you to maintain a healthy credit history so that you can fetch a greater amount of loan. A healthy credit card score also portrays you as a financially responsible individual. Some of the ways you can build a good credit score are –
- Make all your payments on time. Time is of essential importance, especially in these cases.
- Maintain your credit cards for an extended time period. Longer credit history will provide you an extra edge.
- Ensure that you make your payments on time, every single time. Else it would backfire your credit score record. Full timely payment would also ensure that the payment is not stretched for too long, and you would thereby be avoiding exorbitant interest fees.
- Borrow only the amount which you can afford. This will avoid you from racking the credit card debt.
Look out for the Deals
If you are looking into properties for sale or an apartment for sale, keeping your eyes out for good deals such as launch offers, especially during the festival offers, is the best way to move forward. Keeping yourself up-to-date about the price trends in the real estate market will help you strike the best deals, and in some cases, it may also increase your bargaining power. Get into a good research mode and find out if there are any special loan offers or exclusive offers by the builders who are ready to waive off certain fee payments, among other things. Assess the different rates offered by various banks and choose the one which is providing a loan at the lowest rate with a longer tenure. One of the easiest fees you can avoid is the brokerage fee. Save yourself from coughing up a fortune that will cost you dearly. This would require you to be well aware of your dream house purchase.
The above article clearly spells out a guide that prompts you to work smartly to own your dream home. As you tread in this direction, creating an emergency fund is the best step towards safety and security backup. Doing a sufficient amount of research on what benefits you are eligible for by a private bank or through government provisions requires effort. This effort will help you to hit the best gold mine in the market as you will be taking possession of the perfect house! As Andrew Carnegie says, “Ninety percent of all millionaires become so through owning real estate.” Buy a property, own a fortune.