What is the right age to buy a home? Now, that’s the million dollar question. People often confuse this with a closely related BUT a very different question – What is the right time to start investing in real estate?
Recent trends indicate that the average age of home-buyers in India is decreasing, day by day, currently ranging between 24-38 yrs. This is largely due to the increase in disposable income levels (thanks to the private sector) and availability of lucrative financial options from banks. The decision to buy a personal asset is largely subjective as it depends on varied aspects such as financial condition, age, loan availability and other liabilities. Having said that, we cannot rule out the underlying facts that make real estate investment different from owning a home for personal use for an individual or a family.
While the debate over this topic is ever ranging between the two extremes, it does seem as though it is a wiser option to invest in property when someone is in his or her 30s. It’s a relatively better bet because it offers abundant time for the person to develop a large property portfolio. With a credible portfolio of assets, that individual can build up enough collateral to call for fresh loans even at the age of 55yrs. By that time the individual will no longer need to invest in newer assets but focus on increasing the value of the ones already under possession. This is a very lucrative investment practice being adopted by many young property buyers currently, which, if traded intelligently can add up to a good income source for future.
Having said that, real estate investments are tricky. You have to think about long term appreciation, development opportunities for the locality, exit options and other facts. And more importantly, you have to be lucky, as well. So the earlier you start the better, so that you will have ample opportunity to observe, learn and become smart at real estate investments.
And when it comes to buying a home for yourselves, the answer is quite simple. ANYTIME is a good time to buy a home for personal use. It doesn’t matter if you are single, married or retired. Building a nest for yourself and having a place that you own is an experience that gives unparalleled joy. When you find the right place – take that risk, go the extra mile and put your money on the place you want to call your HOME.