Top Reasons Why Should Plan a Home Purchase Early in Life
A home is a not only a place where you nurture your family but also an asset that adds to your portfolio and wealth. However, most first home aspirants are torn by the thought of when to start planning for the purchase. The answer is to start as early as possible.
This is because early planning leads to early execution, which offers a host of benefits. Additionally, at this stage of your life you are likely to have fewer responsibilities to shoulder and can divert your savings to purchase an asset that offers lifetime security and has an appreciating value.
A number of housing projects are added to the real estate market every year, so, for instance if you are looking for property for sale in Thane, you can consider top projects like Ace Square in Ghodbunder Road having 1 and 2 BHK Flats in Thane.
So whether you want to self-occupy the property or rent it out, this makes for a good deal!
But before you start judging your options, take a look at why you should plan home purchase early in life.
Early planning means sound planning
When you start gathering insights and information regarding a home purchase early on in life, it certainly allows you enough time to plan your finances too. Moreover, this way you can avoid committing financial mistakes and can make meaningful choices regarding the house you wish to buy.
It instils financial discipline
This process brings about financial discipline and helps you curb unnecessary expenses at an early age to work towards your goal. Once you pick up the habit of careful utilisation of your financial resources, saving for a home will not be a far-fetched reality.
Moreover, this will help you prioritise your other goals clearly so that you can fulfill them as well without any stress.
It helps in achieving your goal of buying a home early
An early start means you can buy a home early too, and capitalise on property appreciation for more number of years. Also, with home buying out of the way, you will have more bandwidth to cater to other goals.
With the right planning, you can then set out to complete the home buying process. Now, that you know how planning for a home early in life can prove extremely beneficial for you, here are the benefits that a home offers.
You can earn high investment returns
A real estate property is an asset that adds value to your portfolio. So, whether you buy a budget property or invest in a luxurious villa as your first home, you will always benefit from capital appreciation.
Consider a property with higher resale value by taking into consideration the locality’s potential and the builder’s credentials so that you can earn handsome gains over time.
You can earn passive income if you let it out
Even if you happen to shift to a new city in the future, your property can still earn you returns. If you don’t wish to sell it, you can rent it out and earn rental income instead. This acts as passive income that you can put towards other financial goals.
You can enjoy tax benefits on home loan repayment
You can effectively save taxes by way of home loan repayment, by claiming a tax deduction on both, the interest and principal repayment of your home loan.
Section 80C of the Income Tax Act allows you to claim a deduction for principal repayment of up to Rs. 1.5 lakh and Section 24B allows you to claim a deduction of Rs. 2 lakh for interest payment you make on your home loan during one financial year. In addition, as a first time home buyer you can get an extra deduction of Rs. 50,000 under Section 80EE.
So, put off any delays and start planning your home purchase now. If you have already started and have accumulated the amount for a down payment, initiate your property search right away!
Also read: A guide to creating wealth with Residential Real Estate Investment
Source - bajajfinserv-homes-and-loans.in
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