Taking a Home Loan in your 20s? Is it worth? Find out Now!
It’s a common misconception that most 20-year-olds aren’t interested in planning for their future. People assume that a regular twenty-something person would be interested in buying an Xbox or the latest iPhone, rather than thinking about a home loan.
Start Planning Early for a Secure Future
However, it’s never too early to start thinking about your future. Planning early is the key to building a secure financial future.
Whether you’re planning to invest in a property or not, the tips shared in this article can help you navigate through the complex real estate market and help you make the right decision during your 20s.
Why Invest in Real Estate in your 20s?
Real estate is one of the best investments in the market and buying a house pays you rich dividends later on. Also, investing in a house can help you claim tax benefits too. In the event, you don’t feel the property perfect for your lifestyle later on; you can sell it for profit and use the money to get your dream home.
Why Opt for Home Loans?
A Home Loan is a lifesaver when you want to buy a property but don’t have sufficient funds for it. Home loans are a long-term commitment generally stretching for 20-30 years. This is great when you take a home loan in your 20s because you can finish repaying it during your prime earning years, thereby saving funds for retirement from an early age.
Here are a few questions you must ask yourself before you apply for home loans.
Is Home Buying a Priority in your Life?
You must have a solid answer to this one. Don’t invest in a home just because your peers are doing so or because your workplace offers attractive discounts on easy home loans. Instead, ask yourself if you really want a place to call your own and if you’re ready to make that long-term commitment. If you answer yes, then it’s time to scout around for the best deals on home loans in the market.
Ensure that you do your research and understand the terms and conditions before signing on the dotted line.
Have you attained a Financially, Secure Job or are you undergoing a Career Metamorphosis?
The 20s are the period when you can experiment, try new things before you decide to settle on your preferred career path. It’s the time when taking a risk in your career doesn’t affect you much financially. You’re still young, don’t have a family to look after, can always fall back on your parents, the advantages of this period are many.
Yet, if this is your current career trajectory, then it isn’t wise to opt for new home loans. Take a home loan only when your career has reached a stable growth path so that you can easily pay off your EMIs.
Have you saved for the Down Payment?
Most 20-somethings make the mistake of opting for home loans without saving for the down payment. This not only increases your EMI but also increases the interest rate. So, before you go hunting for home loans, ensure that you have saved enough to meet the down payment.
To Buy or Not?
There is no one answer to this question. Consider your personal finances and answer all the questions mentioned above to arrive at the right answer to, “Should you apply for a home loan in your 20s?” Once you have made up your mind to apply for a home loan, find out your eligibility at www.antworksmoney.com and compare your options.
