Buying a home is one of the most important financial goals in life. Building or buying a home is a complex process. Here's a list of things to consider when buying a home:

Save for Down Payment

Buying a house usually requires you to pay a monthly EMI and an upfront down payment at the time of buying the house. Most people usually put down payments in the range of 10-20% of the home's value. The best way to do this is to save every month for an upfront down payment for 2-3 years before buying a home. This can be done using low-risk instruments such as debt funds or mutual funds. The idea here is not to maximize the return, but to save and accumulate funds with the lowest risk to capital.

EMI Salary Ratio

In addition to pursuing your dream of buying a home, you should not forget about your other short- and long-term goals. You can ensure this by following the Rule of 40. For example, if your income is Rs 100, you need to ensure that your EMI does not exceed Rs 40. This is basically aimed at ensuring that you have enough room to accommodate other goals and will keep you from racking up debt.

The ratio between income and household

A common mistake that one can make while buying a house is to overstretch for the dream home, which is common because when one is fulfilling a dream that one has been wanting for a long time, people tend to forget the practicality and go after the emotions. Therefore, it is important to pay attention to the income house price ratio to give a reality check in such times when it is shrouded in emotions. If you do, the idea is to calculate how many years it will take you to pay the cost of the home using your current household income. Ideally, it should be 4 to 6 times, which means if your annual income is Rs 25 lakh, the house price should be between Rs 1 to Rs 1.5 crore. By planning in this way, you will be able to understand where to limit your budget.

Suitable age

There is no specific "ideal" age to buy a house in India, as it depends on personal circumstances, financial stability, and personal goals. However, let's take a look at some of the factors to consider when deciding on the best age to buy a home:

Career Stability:

Buying a home is a long-term commitment, so it is advisable to wait until you are assured of career stability and job security. This ensures that you can continue to meet your financial obligations even if there are changes in your work situation.

Life stage

Your life stage and personal circumstances play an important role in deciding when to buy a home. For example, young professionals may prioritize job advancement and mobility, while individuals or couples starting a family may prefer to settle down and invest in a permanent home.

The market conditions:

Monitor real estate market conditions, including property prices, interest rates, and availability of housing options. Adjusting your purchase in a timely manner or taking advantage of a favorable interest rate will help you make a more cost-effective investment.

Ultimately, the "ideal" age to buy a home varies from person to person, and it depends on a combination of financial readiness, personal circumstances, and long-term goals. It is crucial to carefully assess your situation and make an informed decision in accordance with your preferences and aspirations. Also, it is important to ensure that after a career of 10-12 years, people get more clarity about the city they want to settle in and have a decent credit score and savings to buy a house.