Young couples should always keep in mind that buying a home represents a long-term investment. Those days are gone when people would save up all their lives and buy homes after retirement by using their life savings. However, these days, the average age group of homebuyers has come down to around 34-38. Young couples with double income are maximizing their financial potential for purchasing a home.
Here are some tips that these couples should always have in mind:
- Know the basics- Buying homes should not just be an act of enthusiasm. There should be solid investment rationale behind all such decisions. There is so much information available online and one should do their homework carefully before buying. You should find out everything from the location, future prospects and appreciation potential, social infrastructure, the size of the project, apartments, interiors, carpet area and pricing apart from factors like community amenities, all charges and costs and parking among others. You should take your own decision even when you take advice from several sources.
- Starter Homes- Starter Homes represent a concept which is fast becoming popular with young couples. These homes are the first homes that young couples buy early on based on how much they can afford. These homes are usually located in good areas which are nearer to workplaces and schools but are not too large sized. The idea here is to upgrade to a bigger home when the family and financial needs both increase simultaneously. Young couples can tap into their higher loan eligibility for investing in bigger homes. They should look for good amenities and locations which will help them sell of starter homes swiftly in the future.
- Locking the Budget- Deciding on a suitable budget is highly important when it comes to young couples who are looking to buy a home. In case of a single income family, a starter home is a good way to begin. In case of dual income, the couple can look for something a little better without significantly overreaching. One should look to secure a home for the family while keeping the ability to financially indulge a little during the first few years of wedlock. You should also work in the future financial implications in terms of children.
- To buy or rent?- Many young couples still prioritize buying a home since it is better to pay EMIs for an appreciating and high value asset rather than rentals which do not offer any returns at all. Also, owning a home ensures greater security and emotional stability and it also lends a platform for pursuing future goals.
- Present Market Circumstances- The current market scenario should be factored in while looking to buy a home. Young couples should keep an eye on the property prices across several Indian cities, the market prospects and how real estate has performed over the years. Buyers should be aware of RERA, price movements and the possibilities involved in negotiating with the real estate developer for garnering more discounts.