Many Indians complete their education and start working with a good paymaster by mid-20s. Here are a few reasons that make investing in a home early on in your career a great choice:
- Real estate in tier 1 cities in much in demand:
Owing to the increasing business activities, cities like Hyderabad in the past have enjoyed steep rising demand for homes. Flats in Hyderabad for examples saw an over 30% increase in demand between 2013 to 2017. Chances are that property in these cities will stay in demand in many more years to come.
- Inflation:
The prices for all good residential properties in Tier 1 cities are steadily rising, many times higher than inflation. If you buy an apartment early in your career than later, chances are high that the appreciation will beat inflation over time. Tax rebates on the interest of home loan add up to the benefits of home buyers.
- Fewer commitments:
When you buy an apartment early, you will be able to pay it off earlier since your commitments on the family front are limited. Buying a home becomes more difficult when you have school fees to pay and many other expenses skyrocketing by the day.
- Rent versus EMI:
The rentals for flats in Hyderabad, Bangalore, etc. Can be really high. While paying the rent may seem an easier option it is not necessarily a better option. Paying rent is like an expense, on the other hand, when you take a home loan and pay EMIs at the end of the tenure you become the owner of a property.
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