Everyone has to plan when buying a home. Even so, owning one is still beyond the reach of the average person. Because the dream of a house has to be fulfilled with the help of financial institutions. In such a case, consumers have to face the double challenge of fulfilling the criteria of home loan and its documents along with the technical aspects of home purchase. Banks or non-bank financial institutions approve home loans only on the basis of certain conditions and criteria.
The age of the borrower is a factor to consider when approving a loan. The age of the applicant is crucial especially when taking a long term loan. This means that those who are close to retirement do not get long term loans. Conversely, the younger the age, the easier and faster the process of getting a loan from a bank. That’s why investment and real estate experts advise you to plan your property at a young age, whether residential or commercial. _ Let’s try to calculate the right age for buying a house or investing in real estate. Assuming the average working age is up to 60 years of age, it is advisable to invest between the ages of 30 and 35, considering the risks involved in investing in real estate and the long term loan period. Because if you invest at the age of 30, you have a period of 30 years to repay the loan. Other investment options can also be considered. Of course, even in the forties, the investment option is open. Only, The better the financial situation, the less conflict there is. Also, since it is relatively easy to take risks at a young age, planning for real estate or other destinations can be helpful.
Anyway, times have changed. There are various ways to earn money even after reaching retirement age. Banks have also agreed to this. Therefore, if the CIBIL score is good and has the capacity to provide collateral security, then banks may consider lending to persons above 50 years of age. The most important thing is that such a loan is not available for a long period of time. Therefore, if the pressure to pay higher monthly installments on time in a short period of time increases, mental and physical health may deteriorate. Therefore, it is advisable to take home loan or any other large loan at a young age.
Even if you are thinking of buying a house with a retirement plan in mind, it is important to plan for the right age. This means that if a person in their thirties or thirties is living in a rented house and is thinking of buying a home to live in after retirement, that option can be beneficial. The reason for this is that after retirement, if you do not have an active source of income, you can get relief from monthly rent if you stay in the house you own. It also makes it possible to inherit property for the next generation. Therefore, if you plan to invest in property at an early age, you can avoid later struggles as well as physical and mental stress and you can enjoy a happy life after retirement.
Courtesy : Maharashtratimes.com