“Sooner the Better”, is one quote, which holds absolutely true when it comes to buying a house. Though when you start earning, you are young and home buying will be the last thing on your mind. But, that should not be the case. The earlier you buy a property the better it will be for you. Whether it is that capital gains, return on investment, rental income or early closure of home loan, there is end number of arguments, which go in favour of such a decision. Moreover, you will have the ability to buy a bigger, better and your dream home or second home too.
Here are the 5 big advantages of buying a house early.
1. Higher Return on Investment: Imagine if you buy a house for 50 lakhs rupees when you are 25 years old, what will be its price when you are 40 years old? Just, pause for a moment, analyze the real estate market and then decide. Maybe, the house you book at the age of 25 is not your dream home, but it is definitely the passport to one. You can easily buy a spacious, luxurious home for yourself by the time you will actually need it. Whether you are compromising on the house size or amenities, it will all be taken care in a few years. Yes, such as the long-term capital gains, which you can expect when you invest in a property at a young age.
2. Passive Income: You buy a house in Bangalore and end up shifting to New York for work? Well, the job market is volatile, it has made the world a global village, but should this stop you from buying a house? Well, definitely not. The property will always reap profit for you in some form or the other. If you don’t live in that house, give it on rent and enjoy the passive form of income. And whenever you return, you can live in your own house.
3. Tax Benefit: Why pay more tax when you can save it? And buying a house will surely help you get tax benefits. You get a tax rebate on home loans both on interest and principal amount. So, your tax savings can actually finance your home to a certain extent. Moreover, whether you buy an under construction property or ready-to-move-in you will get a tax rebate in both the cases. Instead of paying tax or struggling to find different investment options, simply buy a house and save.
4. Bid Adieu to Home Loan when Still Young: When you take a home loan at 25 years of age for 20 years you will be EMI free by the time you are 45. And in case you have extra money and you keep depositing the extra in your home loan account you will be EMI free even before 20 years. You can actually plan your second home or live EMI-free and enjoy the financial freedom.
5. Better Buying Potential: The first house, which you buy at a young age may not be a fancy and big one. But with a better return on investment over the years on your first home and your own financial growth, you will have a better buying potential. So, you can buy a better, more lavish and spacious home with this long-term investment.
Buying your first home when you start earning and have fewer responsibilities will be a favourable decision. This way you will be able to make an asset, pay off the first home loan early and make more such immovable assets. If you are planning to make your first home, then the Orchard Square project of Valmark can be a perfect option for you, while those looking for an upgrade, Valmark Cityville, and Apas can provide you with uber luxury living like never before. From quality homes to best in class amenities, you dream it and we will help you realize it. You can see our upcoming and completed projects from here and for Orchard Square get all the details from here.