How to Own your Dream Home Before You Turn 30?

Thirty is a number which is a milestone-equivalent, especially in Indian society. Be it a salary hike or age, 30 is the number which is in everybody's mind to be a decent one to move further. Once you are 30, you would have either started your family, got settled or have become an owner to a beautiful home and if not, must have started planning towards it. Fostering dreams is one right nobody can take away from us and when it comes to your dream home, it is the ultimate one. Owning a home is everyone's dream but when you have financed your own home, it is something you can call as an achievement, a boast-worthy achievement. Even if you are not in your 30's but will be soon and more importantly look forward to buying a home in the near future, here are a few things you must consider;

  1. Plan it from the very start

Buying a home is no child's play. It is one of the biggest expenses you will ever make in your life and there are a lot of people who will stay in the same home throughout their lifetime. Hence, it is very important that you plan for your future home from the very first job you get. It will seem a little too early but with the super-fast rise in inflation on a yearly basis and lifestyle inflation as well, there are very high chances that whatever you have saved is going to fall short. If you can make it for the down payment, kudos! That's an achievement. The sooner the better, still if you are nearing 30's and haven't yet given it a thought, now is the time you work on it. Work on an investment strategy, which should involve mutual funds, check HDFC Mutual Fund calculator that will earn you the desired down payment of your future home. Review your life goals and prioritize. 

  1. Simply saving money will not work, Invest

Just saving for your future plans does not work anymore. You need to go that extra mile in order to fulfill and realize your dreams. Saved money is just idle money, with the skyrocketing prices of real estate and inflation beyond imagination, you need a top-up on your savings to buy a home. Hence, Invest!

Start investing now, as we said above, sooner the better. You also need to keep your expenses in check and if need be, live frugally for some time so as to save and invest for your future home.

Entrench your investments across low-risk instruments as if you invest highly in equities, there is a chance of losing some of your money which you cannot afford as of now. Invest in a mix of debt and equities with more inclination towards debt funds, like in UTI Mutual Fund schemes if you plan to buy a home in the near term, invest in short-term funds and keep reinvesting the matured amount until you finalize your future abode. 

Make the best use of the power of compounding. Let it work to your utmost advantage by investing in SIP i.e. Systematic Investment Plan which allows you to invest a regular amount of money and increase it gradually. 

Once you have set your goals according to their priority and have made the appropriate investments, maintain it and be consistent. 

Why you must buy your dream home in your 30’s?

Although there is no age to realize your dreams but things if done on time add a sweet flavor to life and wonderful memories to rejoice. Apart from it, it is highly beneficial to buy your future home in your 30's. Here is why;

  1. You will have more time for loan repayment

now that you have saved for the down payment, the rest of the amount needs to be financed for which people generally take a loan. So, the younger you are, the more time you will have to pay your EMIs which can be customized for a lesser amount over a longer duration.

  1. Younger people easily get loans

All banks check for the demographic details before lending a loan. The younger you are, the better the chances of getting a loan. 

  1. Tax benefits

For those of you who didn’t know this earlier, there is a rebate under the section 80C of the Income Tax Act, 1961 which allows you to claim deductions in your EMIs for home loans. 

  1. Improved credit score

Although credit score gets adversely affected if you are not punctual and consistent with the repayment of your EMIs, a good credit score is built up only when you take a loan and repay it on time. 

  1. Real estate appreciation

Irrespective of the current market conditions, real estate always has a great scope for appreciation which is an asset in your pocket. In further future when you plan on reselling the property, you will be at an advantage.