Your 30s Are the Best Years To Invest in a Home
Essential Real Estate Insights
Buying a home is considered the most essential landmark when it comes to settling down in India. Most people dream of owning a new home at a younger age to enjoy several perks like longer loan tenure and tax deductions. Moreover, investing in a new home is an ideal choice if you plan on getting married and living with your family. In this blog post, we’ve broken down the top 5 reasons why your 30s are the best years to buy a new home in India.
Career and Financial Stability
To buy a home in India, you must have a stable source of income. Having job security promotes long-term financial stability, allowing you to make informed decisions. As you're most likely to achieve career stability in your 30s, buying a new home makes more sense at this age. Moreover, professional stability gives you the freedom to plan your future goals ideally. Having a steady income and job security in your 30s supports the idea of buying a new home. This is because owning residential properties requires a long-term commitment and regular payment of installments.
Easier Loan Approval
By the time you enter your 30s, you usually have a good credit score if you had started repaying education or car loans during your 20s, and even credit card bills. Loan givers usually consider several facts like age, qualifications, credit history, and future earning potential. So, it’s more challenging to apply for a home loan after crossing your 30s, as it may reduce the chances of approval. Even younger applicants in their 20s may find it tough to get a home loan due to less experience in managing finances. Moreover, lenders tend to offer lower interest rates to applicants with a stable income source and professional portfolio.
Longer Repayment Tenure
Applying for a home loan in your early 30s allows you to choose a longer loan tenure. For instance, if your retirement age is 60, you'll still have 25 to 30 years to complete the repayment. This will allow you the space to plan for other financial goals like travel, marriage, health, and children's education. While a longer loan tenure leads to lower monthly installments, you'll still want to avoid paying excess interest. Thus, you need to select an ideal tenure that gives you ample time to repay the loan without costing too much interest. Hence, choosing to buy a home in your 30s is a perfect choice.
Tax Benefits and Deductions
The government has made efforts to promote real estate investments in India by offering several tax benefits and deductions on home loans. Under the Income Tax Act 1961, applying for a home loan unlocks several opportunities to save on taxes. For example, under section 24, the interest paid on your home loan EMI for a financial year can be claimed as a deduction from your total income up to a maximum amount of Rs 2 lakh. Additionally, the principal amount paid on the home loan EMI for the year can also be considered for deduction under section 80C. The maximum limit is up to Rs. 1.5 lakh for the same.
Mature Financial Decision Making
By the age of 30, most people are financially stable and can even be married. Thus, it is an ideal phase of life where you've figured out the place you want to settle in. Once you have a clear understanding of which city would suit your family's needs, you can make better homeownership decisions. Looking for affordable homes in Pune? Check out Sonigara Corp's premium housing projects. You can buy a 2 BHK flat with modern facilities in Wakad or go for spacious 3 BHK options at Sonigara Aangan in Ravet.