If you have your own house, you will experience financial independence and emotional security compared to others. Therefore, it is very important to have one’s own house. You should buy the house at the beginning of your job. But Indian youth do not believe so. He does not want to bear the burden of EMI at the beginning of his career. Today’s youth want to travel the world. They prefer to travel abroad or invest instead of buying a home. The youth live in rented houses instead of buying houses. Older people are troubled by this attitude of youth. After all, why do youngsters do this and why don’t they buy houses. Information related to this is being given through this article.
Why do not young people buy houses?
The youth do not want 20-30% of their salary to be spent on the EMI of the home loan. If they take a home loan for the house, they will have to repay the home loan for many years and they will not be able to take other investment-related risks. They will have to reduce their other expenses. With this, after taking a loan, it will become a necessity for them to do jobs, while they want flexibility in the job.
Rent vs. Buy
Let’s compare the cost of buying a house and the rental of the house. Most apartments in Mumbai are priced at Rs 1 crore. An apartment in Pune will cost around Rs 70 – 80 lakh. Homes in Hyderabad cost between Rs 60-80 lakh. If you take a home loan to buy an apartment in Mumbai, you will have to get a home loan EMI of one lakh rupees. It will be Rs 50,000 in Pune or Hyderabad. In Mumbai, apartments can be rented for Rs 35 to 40 thousand and in Pune for about 20 to 25 thousand rupees. There is a difference of 3-4 times between rent and EMI. So if rent is 30% cheaper than home loan EMIS, then why would youth buy a house? At the same time, many youths rent a house together, which makes them less.
Buying a house is difficult
In taking a home loan from a bank, paperwork has to be done, documents have to be given and the bank has to go through the prescribed procedures. At the same time, legal documents are also available when buying a house. At the same time, people also commit fraud. Therefore, before buying a house, many types of checks and documents have to be taken. At the same time, if the credit score is not correct, then there is a problem in taking a loan from the bank.
How can youth be forced to buy houses?
By banning rent
This has been done in America. In this situation, people have no choice but to buy a house.
Approximate Rental and EMI
If the house rent increases and the EMI of the home loan decreases, the youth will come forward to buy the house. If the house rent and EMI are almost equal, the youth may still prefer buying a house. With this, you can get a tax benefit of up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act on the EMI of a home loan. You can avail tax benefits of up to Rs 2 lakh per year under Section 24 on home loan interest. If the EMI of the home loan becomes equal to the rent of the house, then the youth can invest in the house.
The process of buying a house should be transparent
There is a need to make the home buying process transparent. It also takes a lot of time to buy a house. Along with this, real estate firms should offer easily understandable mortgage packages and encourage people to buy homes.
Use technology to buy a house
Most of the youth buy things online using their mobile phones. It would be great if youngsters could buy a house online. There are many sites that offer a 3D view of the home to help you purchase a home. This makes people feel a real home. This helps in buying a home to a large extent. You can take help of online mortgage estimator, home loan EMI calculator, online loan approval and check property rates online.
USA vs India, where to buy a house?
- People in America are comfortable taking loans. At the same time, Indians feel difficulty in taking loans, but now Indians are also getting comfortable with debt.
- Home loans in the US have lower interest rates. There interest rates are around 2.5-5%. In India, home loan rates range from 8–11%.
- Buying a home in America is very transparent. Everything is online and regulated. At the same time, people in India have to face different types of problems.
