while buying a house in your twenties may seem like a daunting idea to some, it is not an impossible task. getting a home loan in India is easier than ever today and tax exemptions act as cherries on the top. in fact, the Aspiration Index of 2019 reveals that ‘buying a home’ is the leading aspiration for both men and women in the age bracket of 22-45 years. hence, buying a house in your 20s is not as uncommon as you might perceive.
but, before we get into the mix and lay down the path for you, there are some precursors that you should be leery of:
being clear about your goals and priorities will only smoothen your investment journey.
1. finding the ideal agent
let’s face it. it is improbable to know about the nuances of the real-estate trade for anyone who’s in his/her twenties. the cost of making a wrong investment can potentially be miles ahead than the commission of a real estate agent. so, the first step is to find a reliable real estate agent who understands your needs, wants, and expectations.
2. getting the basics right
how well have you churned the numbers? here are some viable metrics to consider:
3. conducting extensive research
the only feedback system to your decision-making regime should be impeccable research. anything apart from this would only breed investment pitfalls. leading research characteristics that you need to consider include:
4. evaluating the home loan options
availing a home loan would be imperative for a real estate investor in his/her early twenties. chances are that you do not have a substantial credit score yet and this can potentially create friction in your investment plans. the primary evaluation of banks for home loan applications include:
you can use financial calculator to plan your home loan buying decision.
the quickest and safest way to meet most of these criteria is to bring in a co-borrower or partner that has a proven track record. it can either be a family member such as your parents or spouse, or even a trusted friend. critical prerequisites to ensure here include a good CIBIL score, decent income, and a steady job.
whatever you do, be realistic about the returns of your investment and ensure that you are able to pay off the house within a time frame of 7-10 years (ideally). appreciation of the property’s price depends on various factors such as its location, quality of the construction, connectivity with the city, and upcoming infrastructure projects in the locality.