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Kolkata: Traditionally, renting a home was regarded as a default option for the young people in this country. But developers are saying that millennials and Gen Zs are buying homes in larger numbers when they are young. Needless to reiterate a few factors are triggering this development and these are increasing rents, easier access to financing for young people, changing lifestyles and income profiles.
Against this backdrop, Ms Ankita Luharuka, CEO of Alliance City Developers, tells TV9 that buying a home early in life is not only an emotional choice, but also a smart financial move. While many of us would In fact it could help a young individual stay "disciplined and stable" as well as "build wealth over time" said this real estate veteran.
"One of the biggest advantages of purchasing a home early is the ability to lock into real estate prices at a younger age. Property values in urban India tend to rise steadily due to infrastructure upgrades, limited land availability and growing demand for well-planned neighbourhoods," said Ankita Luharuka. Explaining her stance, Luharuka said, "When young earners start early, they give themselves a longer horizon to benefit from appreciation, compounding returns, and potential rental income in the future. This combination makes real estate a powerful long-term wealth-building tool".
Luharuka also brought up the very significant point of financial discipline. "EMIs create a natural financial discipline," she states unhesitatingly. And goes to add, "Young professionals nowadays have a lot of options for spending their money on things that would improve their lives, such travel, gadgets, subscriptions, and increased conveniences. Even though these costs give you instant pleasure they don't usually help you build long-term financial stability. An EMI, on the other hand, ensures that a meaningful portion of monthly income is committed toward an asset that retains and grows in value," . This shift from discretionary spending to asset-backed spending forms a strong foundation for wealth creation".
She buttresses the point of stepping into EMIs early in life. "The financial justification for buying early is simple: EMIs put money into a secure, appreciating asset, promote financial discipline, and provide long-term stability," says the Alliance City Developers CEO. She also goes as far as describing the act of buying home early as something far more significant than just a purchase. She described it as "their financial freedom and future prosperity".
This is another advantage, that of rising affordability over time, that Luharuka points out emphasising rising incomes render an EMI more and more affordable witht time. "At the beginning of their careers, individuals often opt for a comfortable EMI-to-income ratio. But as jncomes rise and careers mature, the same EMI feels smaller relative to earnings. Many young homeowners then utilise bonuses, increments, or savings to make part-prepayments, which substantially reduce the loan tenure and total interest outflow," he argues.
