Home Buying Age Group Trend in Kerala
There is no correct age to buy a home. In most cases buying a home happens when the timing is right, that is, soon after the buyer has repaid a major debt. As a result of the many observations and studies conducted in this area, experts have come up with the average age to buy a home to derive the maximum benefits.
At What Age do Most People Buy Homes
The right age group to buy a home, experts claim, are those falling between 25 and 34 years of age. This helps you derive the maximum benefits in terms of equity when they enter 60 years of age. For those that purchased their homes later in life, when they were older, the real estate wealth that accrued was less. This is because, in general, property values appreciate over the years.
In this context, a surprising revelation of the study was that buying a house when younger, that is less than 25-34 age group, did not necessarily equate to enjoying higher home equity in old age. In fact, their housing wealth was less when compared to those in the 25-34 age group, which seems to be the optimum age band when one can buy a home for the best benefits.
The studies indicated that for those who purchased in the optimum age band of 25-34 years, the homeownership rate increased to 60.3% when they were in the band 35-44 years and to 71.4% in the age-band of 45 to 54 years and increased by another 5% when they were in the age 55-64 years of age. The value topped at 78.9% when they were over 65 years.
The main reason for the lesser value accrued as home wealth is the lower value of the house when it was purchased initially. They appreciate less over the years though advantageous during the time they are bought.
Benefits of Buying a Home Early in Life
Whatever be the average age to buy a home, there are benefits to buying a home early in life. Let us see what they are.
- It allows you to build wealth
This is a great method to increase your net worth. Monthly payments to the lender are in fact savings that go towards increasing your home equity. Later in life, this accrued equity can be used for satisfying other needs in life if required.
- Your home value appreciates
Though there is no guarantee for value appreciation of homes purchased at a younger age, real estate investments help to hedge against inflation and keep pace with increased prices in a majority of cases. This is an important factor that contributes to the appreciation of wealth, especially in markets with high potential. For any real estate investment in a developing area, the property is likely to return high yields in a few years’ time.
- You have a place to call your own
At the end of the day, you can get into your own hole and shut out the outside world, no matter what the problems are. A self-owned home allows you to live in more self-dignity and improves the feeling of self-worth. You do not have to bow before a landlord and there will be no talk about security deposits any longer. In every single way, your home is a reflection of your persona. You do not have to look out for a new home every now and then at the whims and fancies of the homeowner.
- The repayments get over when you are still young
A marked advantage of buying your own home when you are younger is that you complete the repayments to the lender when you are still young. Moreover, as the years pass, the value of the home appreciates in most cases. People enter their retirement phases without too many financial worries, more assets, and fewer liabilities. It is easier to deal with exigencies, financial or otherwise, and complete the payments. These get tougher as you grow older. Though the common age group to buy a home is when you are in your late 20s, in a few cases, people earn more as they get older and easily buy whatever they may want.
- Repayment schedules instill financial discipline in you while you are still young
A commitment to making monthly payments when you are young instills a sense of financial discipline early in life. This payback routine makes you conscious about your financial priorities at all times. Moreover, obtaining the loan and the repayment at a young age makes your credit history an impressive one. This makes it easier to obtain other loans in the future.
- You will be able to make tax savings
When you buy property at a young age, and you avail of a loan for the purpose, you will be available for a tax deduction on the interest paid for the loan. You are also eligible for a deduction on the principal amount that has been repaid by you under Section 80C. therefore you can make a saving on the tax payable and build an asset simultaneously.
- You start saving earlier in life
If you buy property at an early age, the EMIs are lower for longer repayment tenures that you may have opted for. You can also get the loan sanctioned easily. This way you will be able to start saving money early in life.
In the end, it is evident that if you are poised and prepared for buying a home, it is one of the most responsible things that you can do as a young person.
Buying property is a highly secured investment option. Going by the research finding that the average age to buy a home is when you are between 25 and 34 years of age to derive the maximum benefits, we understand that this action creates a valuable asset for both you and your family that you can enjoy throughout your life.