The purchase of a house is one of the essential purchases for every individual. Every family requires a need to buy their own house whichever suits the needs of an individual. The property prices keep on increasing continuously and always there is a steady rise in the prices of the properties. Many people are not able to buy a house due to high property prices and comparatively low budget and thus are forced to stay in a rented flat. The government of India has also taken some initiatives under the “housing for all” to help the people buy their own houses. The individual if buys the home in an early stage of their career then there are multiple benefits of that. The loans if the planned house at an early stage can help individuals avail of home loans for a longer span of years. The maximum duration for which the home loans can be approved is 30 years depending on the age of the borrower. Also, lower interest rates are charged to the borrower in case of applying at an early age. The home loans are available at attractive interest rates to the borrower.
The housing needs are increasing regularly due to the rising population of the country and also due to the migration of people from the rural to urban regions. Due to plenty of jobs available in the urban region, there is plenty of migration of people, especially in metros. Along with a good income, good financial planning is also necessary for an individual to buy a home at an early stage. An individual who tends to save money is more likely to buy a house at an early stage due to proper financial planning. Also, the individual is expected to invest money in financial instruments for getting higher returns on the money like in stocks, mutual funds, or systematic investment plans [SIP]. Investing in financial instruments can help individuals increase the flow of money thus making the home-buying decisions easy. The bank approves 80% of property value as loans from the lender. The rest is expected to be done as a down payment. Also, the borrower should ensure that the credit score should be maintained better for the approval of loans. Also, all the necessary documents related to identity proof, employment proof & income proof should be kept ready for the approval of loans.
Following Are The Benefits Of Good Financial Planning For Buying A Home Early:
Helps Save Money Against Price Rise:
If the home is purchased early then in that case the buyer can save money on the investment as the property prices keep on rising continuously & steadily. Thus deciding early stage of life can help individuals from saving money for the price rise. Also on early purchase of a house at the required place can help save money on the payment of rentals.
Helps Avail Home Loans for a Higher Duration:
In the case of early purchase of a house an individual can get the loans for a longer duration of time. The home loans can be availed for a duration of a maximum of 30 years. The maximum age limit until which loans repayment can be approved is 60 years or until retirement whichever is early. Thus availing of loans for a longer duration can help individuals lower the monthly installments.
The Benefit of Saving Tax:
In case of purchase of the home and the loans availed for the same can help an individual save money on the exemption of income tax under income tax 80C for the duration until which the loans are repaid. Thus for a very long span, the borrower can avail tax benefits on the home loans.
Becoming free From Early Repayment Can Help Plan Retirement Planning:
An individual has to put almost a majority of the expenses of the lifetime savings for the purchase of a house. Thus if the late purchase of the house is done then in that case the funds left are very little for the post-retirement. Thus the individual should plan to buy early stage of life to become early debt free and plan for the rest of the financial planning for children’s education, retirement planning for the post-retirement.
Buying a home at an early stage of a career can benefit a lot to an individual help save money against rising inflation. Early purchase can also help in availing loans for a longer duration thus helping to avail loans for a longer duration. Also, banks charge lower interest rates for the homes purchased at an early stage of their career.