At What Age Should You Own Your First Property in India?

At What Age Should You Own Your First Property in India?

The Saving Syndrome of Indian Middle Class

In India one starts doing financial planning from the word go, the first words which are taught to a child are probably maama and papa. The first financial learning for a child is the word save, which is so often used in a middle class setup in India that it becomes second nature. Accordingly, when a young man or girl starts his/her professional career the money saving cycle automatically gets activated, without much thought. Generally, in our country one steps into the professional career at the age of 24 to 27 years, therefore by the age of 30 he has a professional backing of 3 to 6 years and would have climbed a few steps (probably 1 or 2) on the professional front giving him/her the required confidence and maturity for the professional progress ahead. This is also the period when a professional course-correction would have taken place, incase required.Property in India : the Social Security Mullah

After professional settlement the next important life event is logically marriage, this is the time when we need to squeeze in time for financial investment into Property in India. There are two things which give us pseudo social security and stability, one is gold and the other is Property. Therefore, the earlier one thinks of this investment the better it is. One could argue that with only 4 to 6 years of professional career, the savings may not be enough for purchasing Property in India. Here is where we need to de-link the fact that property always does not translate into purchasing a house for oneself to settle down, may sound obnoxious, but we need to change this stereo type thought process. (You may like to read two of the earlier related blogs real estate perspective a humble investor, real estate investment the humane touch nothing serious about it) Lets look at the financial planning and management aspects of purchasing a property in India.Purchase Property in India : In few Simple StepsContrary to the view that purchasingproperty in Indiais akin to chaar dhaam yatra, if planned well it can be handled in a decent time frame and with no hassles. First things first, go to a bank and checkup the maximum amount of loan you can avail based on your salary, add to it the amount which can be spared from your savings, eureka your budget for purchasing aproperty in Indiais ready! Budget in place, lets move to the decision making cycle. Now, seek some good professional help and do a bit of mix and match between (a) type of property (only select from investment point of view, leave the emotions out) i.e. an apartment, piece of land, office or retail space, (b) the possible locations and (c) keep the budget flexible upto + 10%. Some other important aspects which need to be kept in mind are (a) the class of the builder always go in for a reputed developer, (b) the time frame in which the property would be handed over and (c) How early will the property start fetching rental returns. Once shortlisting has been carried out do a final analysis once again based on the above factors and arrive at the final choice.Advantages of Investing Early in Property in India

In the middle-educated-class, aspirations are high and resources are limited, we often adopt the forced saving technique, in order to balance things. A number of times we fritter away hard earned money on iphones, tablets, smart TVs, a better car etc. (those glossy advertisements and peer pressure, set the aspirations burning), purchasingProperty in Indiaat an early age leads to forced savings.Taking home loans at an early age enables you to drive maximum benefit of the duration of the loan, which is based on your residual service. Also, you start utilising the tax benefits on home loans at an early stage.By purchasing your firstproperty in Indiaat an early age, one has gained valuable experience in thereal estate sector, which will be of great help when you purchase your dream home.Having a Social security likeproperty in Indianot only adds to your self-belief and confidence, but you are much better prepared and in a better frame of mind, for the most important decision of your life i.e. marriage (on the lighter side, you have a better market value).

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