Buying a house in your 40s or 50s: Which is the smarter financial move?

Hindustan Times

2 days ago

A Reddit post by a 53-year-old who lost his job has sparked discussion about the ideal time to buy a home. He shared that he purchased a ₹2 crore house seven years ago without taking a loan. Now, even after losing his job, he lives stress-free by relying on a Systematic Withdrawal Plan (SWP) to cover his expenses.
His advice: don't rush into homeownership in your early 40s. Instead, take calculated risks, explore better career opportunities, and focus on building a solid financial foundation through investments. 'There's no need to hurry. Don't fall for FOMO,' he cautioned.
The Reddit user compared his situation to a friend who bought a home 15 years ago and is still paying EMIs. His advice to younger people is to focus on saving, investing, and taking career risks instead of rushing to buy a house too early out of fear of missing out.
"Don't rush into buying a house in your early 40s. Take risks, explore better job opportunities, and focus on investing as much as you can. Once you've built a strong financial base, then consider buying a home," the post said.
"Life is meant to be enjoyed, not just spent repaying EMIs and loans. Yes, owning a home is important, but there's no need to hurry. Don't fall into the trap of FOMO," the post read.
Others, however, are of the opinion that by the time you're 55, a home is more for your children than for yourself.
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Reddit users agree that building a financial corpus is crucial when planning to buy a home. One user shared that they bought their first flat at 30 and repaid the loan within five years. They later purchased a second flat at 37 and are now working to clear that loan within two years. 'I'm earning decent rental income from my first property,' the user noted, emphasizing how early investments can yield long-term financial benefits.
Another user highlighted that the value of homeownership goes beyond just utility. 'What about the emotional and legacy value a home provides?' they asked. For those who can afford it or are willing to take little risk, they argued, buying a home is worth it. 'At 55, the house is for your kids, not for yourself,' they said.
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Financial advisors say that the decision to buy a home depends on several personal and financial factors. 'People buy homes in their 30s or 40s, but some do it even in their late 50s. A lot depends on when you settle down, get married, and have children,' Suresh Sadagopan, a financial advisor, said.
Family needs and the desire for stability, especially related to children's education, often influence the timing of a home purchase. Buying a home too early in one's career can create challenges. Limited budgets may force buyers to settle for smaller homes or locations far from the city centre, which may not be ideal in the long term.
'EMI planning is also critical,' Sadagopan advised. If both partners are earning and sharing the EMI, it works well. But in cases where the loan burden is high, say, for a ₹2.5 crore property where the couple contributes ₹50 lakh from savings and pays ₹70,000–90,000 each per month, it can become risky.
'If one person loses their job, the pressure becomes immense,' he said. Expensive properties also come with additional costs like stamp duty, registration, furnishing, and brokerage, which often are not recoverable.
He advised homebuyers to exercise caution, especially when making big-ticket purchases. 'Don't try to do everything at once. You can furnish your home gradually over two to three years,' he said.
He outlined two common approaches to homebuying. One involves purchasing an entry-level home early and upgrading later by building equity; the other is to wait, save diligently, and buy a dream home in one go. 'For those who struggle with financial discipline, buying early and leveraging equity for an upgrade later may be the smarter choice,' Sadagopan added.