When it comes to real estate investments, experts point out that young people have never been enthusiastic about homeownership as they are usually not able to afford a mortgage.
Mitu Mathur, Director, GPM Architects and Planners say, “Young people are much less stable as their lives keep changing constantly. Hence, they end up renting homes close to their workplaces. While this might sound ideal, there are several advantages of investing in a starter home, especially for the young generation.”
Initially, factors such as distance from the workplace and lack of ease of commute have always been reasons for not investing in homes. But today, experts say with the increase in rental prices across major metropolitan cities, starter homes have proven to be the right step towards escaping the vicious renting lifestyle by being more manageable.
“Now, young people do not hesitate in investing their money in decent-sized homes, such as a typical two-bedroom unit with a study, which provides them with the right opportunities and advantages,” says Mathur.
Affordability: Rapid urbanisation, nuclear family and rise in disposable income has played a pivotal role in changing the outlook of the younger generation from being a tenant to a homeowner. “With a surge of these affordable and smart homes, there is a huge market for buying starter homes in present times,” says Mathur.
She further adds, “Moreover, starter homes are affordable, making it an advantageous point for investment for younger people who are otherwise burdened with debts in some way or the other.”
Infrastructure growth: Today, distance from the city centre or one’s workplace is no longer a constraint. Knowing that it is an advantage, one can easily buy a home in the suburbs. Experts say, the rise of affordable housing units in the suburbs combined with a steady surge in infrastructure investment, such as better roads, and public commute, by the government, is making it easier for people to travel to work or stay connected with friends and family.
Increased trust in real estate: Earlier, experts say, young people were also reluctant to invest in real estate projects, as there was a lack of trust in the real estate community. However, with the intervention of acts such as RERA in proper form, one can easily recognise good developers.
Flexibility of life: With work from home becoming more common today and people spending more time at their homes with their loved ones, people have realised the value of investing in the right homes — the right size and with the right amenities. “The flexibility in the younger generation’s lifestyle has proved to be an added advantage towards investments in starter homes,” says Mathur.
Demand for facilities/amenities:
There is also a need and desire for newer facilities and amenities with changing lifestyles. Industry experts say companies are now enabling projects with new types of facilities at nuclear and public levels such as small study areas, small niches for sitting, home libraries, well-designed community spaces, Wi-Fi-enabled public spaces, cafes, landscape areas, co-working spaces and creche areas which have become increasingly common and desirable in today’s housing complexes.
Mathur adds, “Today, young people prefer to have such facilities at the reach of their hands while living in their condos. This increasing need for a community/social area where people can work, interact, and socialise is being catered by builders and designers, attracting young people.”
She further adds, “Real estate has seen the test of time as an investment where one can get a tangible return usable by people and their families. Therefore, it is wise to invest a little higher and get a starter home today and pay the EMI rather than monthly rents.”