When is the right time to buy your own house? Answering this question is somewhat tricky. But your thirties can be a good time to leap! By this time, you might have a stable job, making it easier to save for a higher down payment. You can also get a more competitive home loan interest rate to repay the debt comfortably. Thus, taking housing finance in your 30s makes a ton of sense!
Read on to know some advantages of taking housing finance in your 30s.
In your 30s, you have fewer financial burdens than your 40s when the shackles of familial responsibilities bind you. Because you have fewer monthly obligations, lenders consider it a good sign of your repayment capacity, thus improving your home loan eligibility.
Moreover, you are much wiser and financially responsible than you were in your 20s. This makes it the perfect time to borrow housing finance and become a homeowner for the first time.
More time for value appreciation
Did you know that a well-located residential property can see an annual appreciation of 10-20%? The earlier you buy a home, the longer your house appreciates. Thus, owning a property for a more extended period enhances its investment value as an asset.
So, if you become a homeowner in your 30s, you will have a high worth property to your name by the time you hit 40.
Improved credit score for future loans
Building a healthy credit score and history takes time, and taking a housing loan in your 30s can help. Remember, repaying a loan or credit card bills on time helps improve your credit score. Thus, taking a loan can be an effective method to build and improve your credit history. Moreover, it will enhance your home loan eligibility and allow you to borrow much higher loans in the future.
Longer repayment tenure
If you take a loan in your 30s, you can opt for a longer tenure as you’ll get enough time to pay off the loan before retirement. Since your loan will be spread across a longer period of time, your EMIs will also be lower, thus reducing the stress on your pockets.
Learning financial discipline
Opting for a home loan in your 30s can improve your spending habits and instill financial discipline. How? Well, since you need to pay off monthly EMIs, you naturally become more conscious of your other expenses. Hence, you learn how to develop a monthly budget and plan your finances better, which is a crucial life skill.
Over to You
And remember, the right age to buy a house is whenever you feel you are up to the task! So, if you are in your 30s and considering a loan to buy a house, go for it. But before you begin, have a budget in place. You can also use an online home loan EMI calculator to map out finances better.