As a young millennial, you want to be everything and everywhere at once; buying a home might be the last thing on your to-do list. You might rather look forward to moving somewhere new or landing the one dream remote job that allows unlimited travel. It’s no secret that today’s youth does not really want to follow the older generation’s path – a job in a fixed location or buy a house doesn’t really make it to the priority list for a large chunk of millennials. 

However, with increased autonomy and freedom, financial management has taken a backseat for many. A survey showed that around 80% of Indian employees run out of their salaries before the end of the month, regardless of how much they earn. Our parents’ wisdom isn’t lost in this regard. Real estate continues to remain a steady source of investment even today. Buying a house when you are young can really help you figure out your finances. That said, if you are someone who is still sceptical of investing in real estate, here are some reasons to help you understand why you should:

Helps Prioritise Your Financial Management

As mentioned previously, for most youth, financial management may not be a priority. However, in this time of inflation and unprecedented events (like the pandemic) that made the entire world realise the importance of savings, it is high time it is prioritised. Purchasing a house might help you take a crucial step towards becoming financially secure. When you have to budget in order to pay your monthly EMIs or save to buy a home a few years down the line, it builds a sense of discipline. Taking this small step can help you understand the importance of saving in the long run and creating a safety net for rainy days.

Helps in Tax Savings

It’s no secret that taxpayers are always looking at ways to figure out tax savings. If you are someone looking to do the same, buying a house – especially young – can help you do just that. Under Section 80C of the Income Tax Act, first-time homeowners can avail of up to ₹1.5 lakhs worth of deductions in taxes. Apart from that, Section 24 offers a deduction of up to ₹2 lakhs on the interest paid by the homeowner. As a young taxpayer, this can further encourage you to prioritise and efficiently plan your finances. Saving taxes at a young age can contribute to building a savings fund at an earlier stage in life.

Creates a Secondary Source of Income

Some of the largest players in the world of finance have emphasised the importance of creating a secondary source of income. It can help you when the going gets tough, especially when you are finally ready to let go of that job you have hated for too long. If you are planning to live with your parents or already own a property of your own, buying a house in Goa can help create that secondary source of income.

At Kasu, we offer rental management services to our homeowners who wish to lease their property. Our team meticulously guides and assists you with all the procedures to market your home and thereafter, give a seamless experience to your guests. On the other hand, if you are planning to live in your new home, you can utilise the extra space (if there is) by renting it out to someone. A monthly rental income can help pay off the EMIs and contribute to your savings in the long run. 

Makes for a Safe Investment Option

The real estate market has shown a steady appreciation over time, especially when it comes to private villas in Goa. It may not be the most exponential of increments but it is definitely safe, reliable and rewarding. Ideally, people who buy a property young can sell it for a higher price down the line. Financial advisors recommend upscaling to bigger properties as and when the need arises and downscaling post-retirement. This way, you don’t have to worry about saving excessively to either buy a bigger house or create a retirement fund. Moreover, a house will always remain an asset whenever an unforeseen emergency arises.

Lower EMIs

You can either save to buy a house in the future or save a small amount and pay the rest of it in EMIs. When you buy young, you can avoid cutting a hole in your pocket by paying lower EMIs. Technically, EMIs are predicted based on the number of years of employment you have and your principal loan amount. A longer employment term would mean more number of EMIs and smaller EMI amounts. Moreover, repaying your loan in time also helps build your credit score. A higher credit score results in further deductions and benefits for future loans.

Have a Place of Your Own

Living in a rented property comes with its own restrictions – the landlord might forbid you to own pets or throw parties, paint walls or even move the furniture around. Purchasing a house means complete control over what you choose to do with your space. You can add walls, remove them and redo your home to align with your personality. As a millennial, owning a space that is just an extension of you is an extraordinary feeling. It can help you feel like you belong, strengthen your sense of self and show your close ones who you really are. It can go a long way in helping you establish your identity in a world where it’s easy to lose yourself.

Buying a house when you are young can be daunting and is an investment that needs to be dealt with prudently. You first need to assess your financial standing, your other financial goals (such as creating an emergency fund, clearing debts etc), your priorities and your long term plans with your current employer. Moreover, buying a house on EMIs requires you to be constant in your repayment and you need to assess your budget to ensure that you can put some amount aside for this on a regular basis. It is a wonderful experience and a fulfilling one at that to live in and build your own space. At the same time, it needs to be thought through, to make the best of it.

At Kasu, we envision, create and build thoughtful residential spaces in Goa that are in keeping with modern design trends and ways of living. Visit our website to stay abreast of our latest developments and upcoming projects which have proven to be great investments for all our home owners.