Property Buying Tips as per Different Age Groups

When it comes to buying a property, everybody tries to follow the phrase 'the sooner the better it is' in their lives. But usually, this phrase puts many of the real estate investors or buyers in dilemma. On the one hand, buyers in their mid-20s age group usually prefer to invest in real estate due to the idle money lying with them while on the flip side, buyers in their 40s or early 50s prefer to buy property as a liability of their lifetime. So, what exactly is the appropriate age to invest in property? Let's take a look at this article which gives you valuable insight as per different age groups:

Investing in the mid-20s age group

The mid-20s is the time when a person starts earning and has idle money left after saving some part of it. Although today's generation has good knowledge and a better understanding of several investment tools that offer healthy returns and within which the top priority remains investing in the real estate segment. The reason is when the returns are identical as compared to other investment opportunities. Just that owning a housing property in mid-20s means that you will be having a financial liability for the next two decades. Since property investment calls for buyers to remain disciplined, financial planning at such an early stage of job and career can be unwieldy and inaccurate. Job change, recession, medical emergency, etc.  can be some of the quite reasons which can bring financial tensions despite bearing so many heavy investment responsibilities at such a young age that can impede your lifestyle. But one should consider certain points in mind especially when you are going to buy a home at an early age:

• Keep aside an emergency fund of at least 8-10 months of your monthly expenditures including your EMI, so that in instances of any emergency or job loss, you can utilize this amount and do not disturb your savings.
• If you are single, then you should have a Term plan insurance cover of at least 125% of the entire home loan. And in case you are married, then it should be at least 200% of the home loan obtained. This will ensure that in any unexpected circumstance, the home loan amount is paid off and the family's future expenses are already looked after.
• Never try to make a prepayment of home loans before five years as there are several tax benefits available.
• The equated monthly installments (EMI) should not exceed 30% of your take-home monthly salary.
• Make efforts to save a substantial amount equivalent to the EMI and invest for more than 5-6 years in a financial asset. Once a financial corpus is built, you can consider prepaying your home loan amount.

Investing in the 40s age group

Investing in real-estate at 40 years of age would imply shouldering more responsibility where you cannot afford to make wrong decisions in life that take you nowhere. Besides this, the banks impose certain restrictions of sanctioning a home loan at this stage subject to the borrowing capacity of the buyer to repay the loan within a lesser number of years left. Above all these, the credibility of the home loan buyers at this age is much more as compared to the younger generation who have just started investing because at the age of 40 years the buyer has a much stronger investment portfolio than the younger generation. Once the property buyer has backed a strong investment portfolio of assets he/she can use it as additional clout and pose financial viability in the eyes of bankers since these assets are extended as collateral for obtaining fresh home loans even at 50 years of age or above. But as the experimentation time with speculative investment gets over by this age, one should sensibly have a healthy risk aversion by the age of 55 years.

Investing in the 60s age group

Getting the desired funding from the banks or financial institutions at 60 years of age is no more a tedious task. However, for obtaining the home loan approval, the prospective buyers should have a strong knowledge of the property market and other investment opportunities along with several investment portfolios.

Normally, at this age, the property investment is done to boost the prospects of the existing investment portfolio even after retirement. Since there is no appropriate age to own a house, the young generation is consistently experimenting with a varied kind of lifestyle where they consider to live on rent, without any other liabilities and travel throughout cities in pursuit of better job avenues. The investment is made towards maintaining a standard of lifestyle. On the flip side, if you have a property during retirement it can prove to be a financial boon during emergency times. This can also prevent you from taking any stress of paying equated monthly installments (EMIs) and rather than making an investment in experiences. So, if you have passed most of your life staying on rent, owning a home at 65 years of age is an ideal decision, at least one tangible thing that can be passed on to your further generation which is the best thing to do.