A few decades back, the only time a fresh out of college fledgeling would consider buying their own house was when they contemplated marrying and even then within a joint family system they saw buying property as an investment. But with time, escalating rents and increased self-independence, the robust Gen Z is showing an inclination to own home by the time they turn 27. The latest Homebuyer Insight Report shows a majority of prospective homebuyers between 18 and 23 who want to buy a house in the next 5 years. About 52% of the above numbers have already started saving for their own property.
The report dwelled on three major aspects of Home Ownership:
Top reasons for wanting to own a home
Major setbacks for buying a home
Will they accept financial aid to buy a home
Starting a Family is the major drive for homeownership:
About 59% of Gen Zer s admitted that starting a family was the driving force for owning a home followed by owning property as an investment to build wealth over time.
Saving for a down payment is the biggest barrier:
66% of young prospective buyers identify saving for down payment closely followed by covering the monthly cost of owning property (EMI) as top barriers.
Gen Z ers are ready to make sacrifices including asking for financial aid to buy a home:
61% admitted that they will do whatever it takes to own property including asking financial aid from relatives or lenders.
In a gist – Young buyers are inclined to own a home but down payment still remains a challenge. Not having enough down payment means settling for cheaper options or having to depend upon family borrowings, expensive personal loans or your future savings. Not having adequate down payment may also lead to higher Loan-to-Value (LTV), higher interest rates and consequently higher Equated Monthly Installments (EMIs). And though parents and relatives might readily help out, the fiercely independent young buyers would rather prefer other sources. So what other options do they have?
Down Payment Assistance Program is a form of the interest-free personal loan equal to your contribution towards the down payment. HomeCapital is India’s first home down payment assistance program that addresses the challenge of the down payment for home buyers and lets you buy your dream home today. Started by a team of professionals from varied fields, the program will provide up to half of your down payment requirements. The program lets you double your down payment capability and widens your reach in terms of home affordability. It increases your home loan eligibility and makes your home buying faster and simpler.