We offer a list of dos and don’ts for young home seekers, to realize their dream of owning their own home. Owning a home is a desire for many and being able to buy a house early in one’s career, can give you lots of joy. Experts point out that very few youngsters take the plunge into this big purchase, as the entire process is often challenging and complex. Although it may seem like a challenging business, if the process is managed smartly, the benefits are worth it.
For a millennial, purchasing a home is an investment in the financial future. Some of the advantages of buying a home in the 20s:
Preparing the budget for a home is more important than evaluating the maximum loan eligibility. For a first home purchase, set aside a budget that is affordable and in-line with your career growth and pay scale. Ensure that you have savings of up to 20-25 percent of the value of the house, before purchase, while the rest could be from a home loan. Maintain sufficient balance in your savings, for emergencies and other investments like marriage, family, vacations, further education, vehicle, etc.
While most banks provide loans of up to 85 percent of the property value, youngsters need first to check the EMI that they would be comfortable paying each month.
Inculcate financial discipline, by prioritizing savings and asset building, and you can end up becoming a smart real estate owner. If you get it right the initial time, there is a good chance you will know the pitfalls of future investments.