Why You Should Not Buy Your Home Too Early, Nor Too Late!

By | November 21, 2017

Buying a property at the right time in your career can make the home buying process easy and ensure a healthy financial standing in the future. 

Why You Should Not Buy Your Home Too Early, Nor Too Late!

Everyone wants to own a home at some point during their career. Buying a property at the right age can make the home buying process easy and ensure a healthy financial standing in the future. But home buying should be done after proper financial assessments only.

If you buy a home at an early age when you are not well prepared, then you may find yourself in deep financial problems later. Similarly, if you buy a home late in your career, then it may impact your financial position negatively.

In this article, we analyse when is the appropriate time to buy a home.

Buying A Home Early In The Career

Home buying, if not planned well, can negatively impact your financial health. Your decision to buy a home should depend on your current income. Buying a home with a loan during the starting years of your career may appear attractive, but in the long run, loan EMIs may put stress on your regular expenses and accomplishing other important financial objectives may become challenging. Similarly, future expenses related to home such as maintenance charges, society charges, the regular upkeep cost, etc. could further put stress on your pocket.

Having a big debt such as a Home Loan in your balance sheet can affect your ability to raise other big loans.

If you have plans to buy a home during the early years of your career, you must ensure that you have financial stability. Also, ensure that your future financial obligations can be met smoothly. You must also figure out the benefit of buying a home over a rented property. Compare the benefits of buying a home immediately and after a few years, and take the plunge only after you are fully satisfied.

Buying A Home Later In The Career

If you delay the process of buying a house and don’t buy it at an appropriate time, then you may shell out your valuable money on rent. You may also be deprived of getting a home at an appropriate location and the price of the property may also increase. Property prices are closely linked to the prevailing inflation rate. So, if you are getting a property at Rs. 50 lakh now, the price may double after 10 years due to inflation impact.

And this is not all, buying a home in the later years of your career would shrink your loan tenure along with a greater EMI requirement. And this would put additional stress on your finances. For example, normally banks may allow a tenure up to 30 years for a Home Loan if the age of the borrower is less than 30 years i.e. the borrower is expected to complete the loan repayment before 60 years of age. However, if you apply for a loan when you’re 45 years old, then banks may allow a tenure of 15 or 16 years only.

Here’s the reason why. At a later age, often people suffer from diseases like diabetes, blood pressure or heart ailments. Therefore it could be difficult for them to handle a loan in such a situation. So, buying a home late in the career may not be good for you financially.

Appropriate Age To Buy Your Home

You should buy a home when you are in the prime of life. It is an appropriate time to buy your own home when you are aware of the short- and long-term financial obligations and yet confident of servicing the Home Loan without any difficulty.

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About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of BankBazaar.com. Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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