Why should you buy a property before you hit 35 years old?

If you are wondering whether buying a house at a young age is a practical decision, well, it is not exactly rainbows and sunshine to buy a house. But it can be a practical choice if you’re financially capable. Whether it’s an investment or for personal use, many young individuals lean towards making their first home an investment. Renting with friends can be an ideal option, considering lower commitments. However, the choice ultimately depends on the individual’s priorities in their initial property journey.

We prepare some tips for the first home buyers who are looking to start their property journey at a young age. Don’t forget to jot down these tips!

Expect houses to always be expensive

Buying a house during times of inflation can be a wise move for potential high returns on investment. However, predicting inflation’s decrease is challenging, and if financially unstable, it’s advisable to postpone buying. Strategic locations near amenities like LRT and malls can increase property value. For personal use, considering sub-sale houses, which are second-hand and usually more affordable than new projects, might be a practical choice. Keep in mind renovation costs for sub-sale houses, and for condos, the focus is mainly on the interior design of your unit.

Narrow your burdens

Individuals aged 20 to 30 generally have fewer financial responsibilities than those over 40 who often have family and education expenses. It’s advisable to start paying off a house in your 20s or 30s when financial obligations are lower. Be cautious if you have other commitments like car payments, PTPTN, or credit cards, as timely payments affect your credit score. Managing finances well is crucial when considering property investment or purchasing for personal use.

“The merrier, the better”

We totally get why youngsters would want to delve into property investments. Billionaires and millionaires had a great turnover rate with property investment, the inspiration and aspiration to be successful and rich is tempting.

Unfortunately, there is a fine line when it comes to property investment, and it is true that you need more than one house to get a high return on investment. But being too optimistic about getting 2 houses with the intention of selling one in order to make a profit can cause you to drop into a financial hazard.

This is because the interest rates on mortgages are quite high unless you purchase the house outright with cash. So just as we mentioned above, you have to understand your investment goal when it comes to real estate. Start your journey slow and steady. Draft it out and consult it with an expert to make sure you are on the right path.

35 years loan repayment period

Securing a home loan becomes more challenging for individuals aged 35 and above due to increased financial obligations. Banks may reject applications or offer shorter repayment periods. Purchasing a house before the age of 35 can be advantageous, as it reduces the financial burden associated with loan repayment. Confidence in maintaining a stable financial situation beyond the age of 35 is necessary for those considering delaying their home purchase. However, the appeal of enjoying homeownership perks before reaching 35 is undeniable.

Overall, purchasing a house at a young age offers long-term benefits, allowing ample time for mortgage repayment, equity accumulation, and financial stability. Starting early provides more property and location options within budget constraints. This decision can secure future financial well-being and potentially serve as a source of passive income through rental properties. Evaluate the pros and cons based on your financial situation for a burden-free property ownership experience.

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