The age-old notion that only the elderly could or would buy homes with their life savings hardly holds good in the contemporary era. Even till three decades ago, the typical Indian homebuyer was invariably in his early fifties at least. However, in today’s age and times, home buyers in India are younger as ever, with most of the sales being recorded for an age group of 34-38. The following are some handy tips that young couples will find very useful when it comes to home buying-
- Know your fundamentals – ideally, the enthusiasm of home buying should be tempered with sound investment advice. Also, the decision to buy a home should not be influenced by other people’s thoughts and opinions. While a particular section of young couples with a certain degree of financial agility may view home-buying as a very desirable thing, another group of comparable fiscal ability may be content in living in rental homes and investing their surplus money elsewhere.
- Deciding the budget- A major factor is whether the newly-baked family comprises a single earner or it is a dual-income scenario. The main focus should be to secure home while simultaneously retaining the ability to enjoy the first years of married life reasonably, such as accommodating travel and entertainment expenses.
- The current market scenario – over the past couple of years, significant property price rationalization in many cities has been witnessed. Consequently, more properties are now affordable for a much larger cross-section of new-age buyers.
- Balance between investment rationale and emotional value – real estate is globally considered to be an asset class that provides excellent risk-adjusted returns in the long term. It is also a performing asset as it can generate rental income or provide freedom from rental outgo despite gaining in value. It should also be noted that losing out on the best opportunities today in the anticipation of further price corrections can make way for a considerable loss for those who defer their decision too long.