Are you planning to take a final break from your workplace in the next 5 to 10 years? This is really a time when you can actually go for house hunt. You may be thinking why you need to do this now when you still have many years to buy one. Buying a house before you retire is actually a good idea in case if you are planning to get a mortgage.
If you make a buying decision today, you can avail the benefits of low-interest rates available today. We all know that the interest rates won’t remain the same in near future. Other than the record low-interest rates, there are many other benefits of buying a retirement home in Bangalore. Now when you work full time, it is better you buy rather than wait for some more years.
You’re the most suitable long term investor
Millennials don’t care about long-term and they are really not the most suitable investors who think long-term. Now when you’re in a position that you can easily think about how your next five years will be, calculating your potential expenses for the retirement will still be difficult for you. The same goes with the budgeting for a new house. If you buy a house now, you can easily understand what would be your monthly expenses and it will help you get a clear idea about your budget for retirement. Having a mortgage during the retirement turns out to be the biggest thing where your monthly payment goes.
You’re eligible for a mortgage
When a lender will evaluate your financial condition, they will do it according to the debt to income ratio. During your retirement, you won’t be having the source of income you currently have. So when it comes to taking a loan, the interest rates you will be paying till the day you retire will be very less. If you delay, there are chances that the lenders may turn you off and the application may get disapproved for obvious reasons. Even if you get your loan approved, the interest rates will be higher as the payment terms will be different.
A debt-free retirement
When you are in a full-time job, you can easily pay the debt while making sure that your retirement will be debt-free. During the retirement, many people just rent rather than buying a house because getting a loan becomes harder and paying off mortgage becomes tough. So as soon as you buy a retirement home for yourself, you can start paying back when you are already in a job. In the next 5-10 years, depending on your loan tenure, you can pay for the loan and can enjoy a retirement freely. When you’re actively working in your business or job, it becomes easy to tackle the financial challenges in a very positive way. After retirement, things don’t remain in the same way.
There are also many benefits of owning a rental property. Delaying a home purchase makes no sense when you can avail all the benefits now and won’t be getting the luxury later.