Whether rented in sprawling row house or a studio apartment, there is always a craving desire to own a home. Besides, investing in real estate to own commercial buildings is ideal for investment. The question that lingers in the minds of individuals is what is the right age to buy a home. To twist the question to attract some more credible answers; is there really the right age to buying a home? For those on a payroll, or in self-employment, here are some factors that may contribute to you answering the question above.
Eligibility for home loans on the basis of age
Whereas buying a house for the first time involves thinking outside the box, First Bank’s take is that there is no perfect age. However, the deciding factor is more or less the readiness of an individual to do so. Despite the age factor, financial possession is the biggest decider towards owning a home. Given that most people depend on home loan to finance the project, then one must attain the eligibility age to acquire a home loan.
Economic facts from mortgage facility providers indicate that an individual needs to service home loans for almost 30 years. This implies that for such an individual to fiancé his/her property portfolio, there is need to start investing early. The idea is, when one is in his 30 years, such a person has no less than 30 years of active employment. This enhances their eligibility as they have plentiful of time to develop property portfolio.
Investment strategy for individuals nearing retirement
Individuals nearing Retirement, possibly in the last percentile of their 65 years of employment, have various financial obligations. These may include school fees, servicing car loan as well as community involvement. This means that when it comes to ownership, older people may have divergent priorities compared to younger adults.
Thinking about shifting investment Individual or asset allocation for a considerable time may seem to work. For instance, an individual may prefer “target retirement funds’ so that the retirement plan when well labelled may automatically act on adjustment of investment mixes such as bonds, stocks and cash. As one grows older, this approach will maximize return and minimize risks. By this age, this approach will boost the existing assets value through means such as constructing portfolio of bond and stock index funds to target an average annual return of 10 to 20-years to retirement age.
The ideal age for buying a home for own
People who are looking for homes for self-use are at an advantage because there is no ideal age for owning a home. Even if one has been living in a rented home until near retirement, deciding to buy one is no harm. In fact, it would be a good retirement pack as he/she settles for a good life after 30 — 40 years of active employment. On the other hand, a young adult deciding to own a home for self-use is equally essential. The monthly rent will become part of loan repayment. Such a home will also act as security and a source of financial freedom at an early age.