Many young individuals in their late 20s or early 30s prefer to rent rather than invest in their first home. That’s because they are unsure of where they want to settle down eventually, and don’t want the commitment of a home. And while renting a home has short-term benefits, you tend to lose on quite a few perks. Here are five benefits of buying a house early that help homeownership beat property renting.
A Secure Financial Investment
When you invest in a home, you also make an investment towards securing your financial future. Real estate prices only increase over time, and in a few years, you can sell your property at a much higher price than what you bought it at. Various studies have also revealed how real estate fares better in long-term investments when compared to other equities.
Helps Build Your Credit
Purchasing a residential property at an early age can help you build your credit score. If you procure a home loan with a lender or a bank in your 20s, it makes your credit history look good. Also, if you pay your home loan back in time, it improves your credit score even more, allowing you to get much higher loans. This consequently provides you with the opportunity to buy a better home for yourself in the future.
Develops Healthy Spending Habits
Investing in any real estate property at a young age is a significant financial commitment. This one step can shape your spending habits for the future as you budget for EMIs, maintenance and other spendings required to maintain your home.
Hassle-free Loans to Young People
Buying a home at a young age allows you the privilege of a longer tenure. And let’s not forget, longer the tenure, lower the EMI. Banks are also more eager to loan out money to young people, because they are assured that youngsters will pay off their debt on time. The income of young people also tends to rise with age. This makes getting a loan easy for you when you start early.
Can be an Alternative Source of Income
You don’t necessarily have to live in your own property which you buy early. Instead, you can rent it and use that money to pay off your EMIs. Or you can always switch to a bigger home in the future, and rent your first home. This can build your savings and secure your future financially.
Buying a new home at a young age is certainly intimidating, but it often comes with a set of advantages, as we have outlined in this blog. But keep in mind that buying your first home is a long, complicated process that should not be taken lightly. Make sure you don’t fall into these major financial commitments, and take the help of experts at Pyramid Lifestyle, who ease this process for you and ensure you are not blindsided by any problems or issues.
As one of the top real estate developers in Pune, Pyramid Lifestyle offers a myriad of residential and commercial offerings across the city. Our plush residential communities provide top-notch amenities and are located at the hubs of growth to lead a healthier, convenient and luxurious lifestyle. Visit www.pyramidlifestyle.com to know more about us and get in touch!
