Tips to keep in mind when buying a home at 50
Aug 18, 2017 Home Trading Steps
Buying a home is a dream. For some, it takes few years to fulfil while for others it may take half the lifetime for it to come true. But nonetheless, the feeling of owning a home at any age is unmatched. When you are at the beginning of your career and decide to invest in homes, there are many options available for you. But when you are 50 or near your retirement age, then the options might be limited.
We discuss all the factors you need to keep in mind when buying a property at the later stage of your life:
1. Your financial ability:
The first thing you need to remember that you will retire in few years and your pension will be much less compared to your monthly income now. This will help in setting the realistic EMIs that will not exceed 40 percent of your total monthly instalment. This will ensure that you don’t get into any sort of financial trouble in future while paying the EMIs of the property. If you have a co- borrower with you, it will help in paying the EMIs quickly. Co- applicant or co- borrower can be your spouse or kin. If you will have a future income after retirement then you will have to inform it to the bank so they can assess your financial stability.
2. Down payment:
No matter what the age is, be ready to pay the heavy down payment for the property. Make sure you have enough finances in hand. A good down payment will help in easing your monthly EMI while lowering the financial burden after retirement. From all the years of your job, you might have some savings, it is better to use them for paying the down payment.
3. Other investments:
Over the years you would have made investments like fixed deposits, mutual funds, stocks etc. Public provident funds can help in strengthening your financial stability. The lender will give a look at these investments while giving you a loan and will know that even after your retirement you will have a source of income. This will again help in deciding the monthly EMI.
4. Maintain a good credit score:
A good credit score will help you in getting the best deal when going for the loan shopping. A good credit score reflects that you are sincere in your payments and careful about your financial investments. A well maintained credit score is a good contributor when applying for home loan.
We discuss all the factors you need to keep in mind when buying a property at the later stage of your life:
1. Your financial ability:
The first thing you need to remember that you will retire in few years and your pension will be much less compared to your monthly income now. This will help in setting the realistic EMIs that will not exceed 40 percent of your total monthly instalment. This will ensure that you don’t get into any sort of financial trouble in future while paying the EMIs of the property. If you have a co- borrower with you, it will help in paying the EMIs quickly. Co- applicant or co- borrower can be your spouse or kin. If you will have a future income after retirement then you will have to inform it to the bank so they can assess your financial stability.
2. Down payment:
No matter what the age is, be ready to pay the heavy down payment for the property. Make sure you have enough finances in hand. A good down payment will help in easing your monthly EMI while lowering the financial burden after retirement. From all the years of your job, you might have some savings, it is better to use them for paying the down payment.
3. Other investments:
Over the years you would have made investments like fixed deposits, mutual funds, stocks etc. Public provident funds can help in strengthening your financial stability. The lender will give a look at these investments while giving you a loan and will know that even after your retirement you will have a source of income. This will again help in deciding the monthly EMI.
4. Maintain a good credit score:
A good credit score will help you in getting the best deal when going for the loan shopping. A good credit score reflects that you are sincere in your payments and careful about your financial investments. A well maintained credit score is a good contributor when applying for home loan.
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