We often see that individuals have insufficient knowledge in their youth when it comes down to savings and expenditure. We spend recklessly which is regretted after. Investing in a house is not about saving up till we have enough money to make such purchase. With options like home buyer loans and EMIs easily available to us, we can start building a better tomorrow from today itself.
There has been an extensive change in perspective where we see the youth are beginning to take up responsibilities. The current generation is seeking independence from an early age, as they are thriving for success with a keen sense of passion. With limited knowledge about investments, we usually strike out a balance between spending and saving. Investing in a house may appear to be a significantly long term commitment, but buying a house before you turn 30, helps you secure a financial status later in life. It helps you understand the concepts of financial and budget management and orchestrate a more balanced life.
If you understand how certain tax exemptions and home loans work, you can lower your dependence on tax liabilities. According to the Income Tax Act under Section 80C, you can sustain a deduction of Rs. 1.5 lakhs from your gross total income. By investing in a house in your late twenties or early thirties, you can stipulate these deductions at earlier stages and make the most from your earnings.
If you are planning to opt for home loans or EMI based purchases, acquire the loan from a direct lender or a financial establishment, which will enhance your credit history that will help you create an impression to forthcoming lenders. House loans pay you back on time at consistent intervals, which shows a significant hike in your credit score, that can be of assistance for future home investments.
The current generation does not want to invest their time in purchasing a house when they are young, because they think that they will have more time in the future. But in fact, when they grow older, there are additional responsibilities that reduce their free time for these investments; such as having their own family.
Investing a fraction of your time to purchase a house will be the most significant asset you’ll have before you are thirty. You’ll maintain a sense of freedom because you will already have a roof above your head and you will not have to worry about moving from one rented place to another.
When you finally purchase a house, your sense of creativity is enhanced by multiple folds. When you are investing in your own house, you are free to upgrade this space in any way you want. This helps you create what you are looking for. Investing in a home is the perfect method of saving and spending.
You will be aware of the fact that your hard-earned savings is being invested towards your dream home and your future. You retain a peace of mind knowing that your family has a permanent residence and they are surrounded by a secure and healthy environment.