Advantages of Buying a House at an Early Age for Millennials

India has a population of 1.3 billion with an average age of 29. This declares India one of the youngest countries in the world. Due to the massive financial power that the youngsters of this country possess, millennials are believed to be one of the most potent demographics globally. Their involvement and decisions constantly change the landscape of numerous industries, including real estate.

They start their careers relatively young and represent a part of society who are well-informed, tech-savvy and well-read about things like politics, investments and finances. To be honest, one does not even need to be a millennial to be aware of the benefits of investing at an early age. Long-term investments are necessary for financial security, and investing in real estate could be a life-changing decision for a millennial.

Here are a few reasons that give millennials an edge when they buy property at an early age:

 Improved accessibility to home loans Tax benefits and massive savings Quicker appreciation rates An additional source of income Financial security and easy retirement 

Better accessibility and higher chances of getting a handsome home loan

Home loans are the best and most widely chosen way to make the ultimate dream of buying a home come true. The younger you are, the higher your eligibility for a home loan. Millennials would be between the age of 20 and 30 today, and they are more favourable candidates for a home loan. They are perceived as favourable borrowers by lenders and banks as they have more years left to earn and have lesser financial obligations. One of the most significant benefits for millennials is that they stand a great chance to avail of higher amounts of home loans at lower EMI rates with longer repayment tenure. Most millennials can even complete their home loan repayment way before the end of their professional life.

Significant savings and tax benefits

Buying a home at an early age allows millennials, or anyone, to enjoy the benefits of tax rebates. When income tax returns are filed, a home loan helps one get tax rebates, and the interest paid against the EMI can be deducted from the total tax. According to the Income Tax Act (read Section 80C), home buyers can avail of tax benefits up to Rs. 1.5 lakhs as tax benefits. Not only are millennials enjoying monetary benefits throughout the repayment tenure, but they are also securing an asset for their future, which is probably the most significant investment of their lives.

Quicker appreciation rates

When one invests at an early age, one can witness the appreciation of the home for a longer time. The lengthier the investment, the higher will be the appreciation of the property value. Say one gets a new flat in Kandivali West today; the property value will grow by leaps and bounds owing to factors such as inflation, market demand, location, and overall economic conditions in India. Buying an apartment in one of the growing localities of a city can witness a tremendous annual appreciation which accumulated over the years becomes significant.

Source of income

Another key benefit of investing in a house at an early age is that it can help it can earn extra money through rental income. And, in today’s day and age, with mounting expenses, we all can do with a little extra income. Also, the homeowner can utilise this income effectively to pay the monthly instalments of the ongoing loan. If you have your EMIs sorted, this rental income is the perfect way to inflate your savings, travel the world, pursue higher studies or be happy knowing you will be comfortable on rainy days.

Security and easy retirement

If there is anything the pandemic taught us, having a home of your own can be a real blessing. Real estate investment offers more financial security than other types of investment, such as gold and mutual funds. Given life’s uncertainties, investing early in real estate offers a security blanket that will shelter you from unpredictable situations and make your retirement happier and more secure.