This is a burning question in the minds of many given the modern lifestyle and the constantly decreasing value of the Indian currency. Future economic inflation and responsibilities of the increasing family might motivate you to finish off with the home buying task. But at the same time, you need to have a sound financial stability of your own or supported by your existing family. Besides, it is one of the major material transactions in a lifetime for many and not planned well, you might be left regretting for dog’s years.
There is no one else but only you who have to make this grave decision so that you may hold only yourself responsible for it. Here we have elaborated both the benefits and drawbacks of purchasing home in your late 30s.
The time you take in repaying the home loan is sufficient for your property’s value to increase substantially. Therefore, purchasing it at an early age will help you in clearing off the debt before you retire to which you can enjoy a secured life with an asset but no burden of debt.
Need for Security
Living in rental accommodation might be feasible for the early years of the career with frequent changes in your job postings but as you grow old, they need to live in your own house becomes a yearning. For that reason, the supply has to be kept ready.
Smooth Loan Clearance
Property proves to be one of the best means in protecting your wealth against inflation, to an extent if not wholly. Buying a home in your 30s allows lets you save on tax through the different deduction benefits offered by the Income Tax Act. The amount of money thus, saved can be used for clearing your home loan faster.
Organized Financial Attitude
The payment of home loan EMIs infuses you with the responsibility of planning your finances. You would become habituated to curtailing meaningless expenses, which is the key to a balanced, tension-free life.
If you don’t have enough savings or capital to back your home purchase apart from taking a loan, then simply relying on your present income might make it disadvantageous for you.
Steady Flow of Income Required
In times when organizations are following the cost-cutting idea of retaining a minimum number of employees after chucking out the lesser competent ones, you can hardly be sure of your permanency. If you, unfortunately, lose a job during the EMI payment process, the debt accumulating will be a bolt from the blue. Even a temporary setback like this can land you in soup since the non-payment of EMIs exceeding 3 months will designate your loan as NPA. At this juncture, the lender has to start recovering the loan through available legal means that include property auctioning. Not only you will find hard to make both ends meet but your credit score will also get tainted.
Expenses Add Up
Other than the pressure of paying the home loan EMIs on time, several significant expenses including funds for a down payment are related to the home purchase. Ceasing your insurance plans or exhausting the emergency fund are usually the solutions resorted to. But it is like burning candle at both ends since you have to narrow down your other personal expenses that are equally important.
Burden of Rent
Again the dearth of in-hand capital might give you a tough time in balancing your payment of monthly rent and home loan EMI if you have a transferrable job requiring you to change your accommodation.
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