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Economic Wisdom of Gen Z in New Delhi

New Delhi: There is often a perception in the society that the youth of ‘Gen Z’ are not serious and are careless in money matters. But a recent survey has broken this myth. It is true that today’s young generation is not only smart, but they are also planning their future. According to the latest data, about 32 percent of youth below 25 years of age are taking steps towards buying their own homes today, which shows a positive change in the real estate sector.

EMI option instead of rent

Every working person dreams of buying a house for himself. Today’s youth have understood that instead of paying rent all their life, it is better to build their wealth by paying the same amount as EMI. A recent survey conducted by ‘Basic Home Loan’ has revealed that 74 percent of the total houses sold in the country are being bought by people below 35 years of age. The most surprising thing is that 32 percent of home buyers are below 25 years of age.

Invest a large part of salary in home loan

The desire of these youth to own their dream home is so strong that they are ready to cut down on their expenses and take financial risks. According to the report, many youth are ready to give up to 50 percent of their salary in home loan EMI. According to the income group, people with annual income up to Rs 5 lakh are deciding to pay 25 percent of their income and those earning between Rs 11 to 40 lakh are deciding to pay 40 percent of their income as EMI.

tendency to make independent decisions

Buying a home is an important financial and emotional decision. Usually people take advice from relatives or friends for this, but Gen Z is ahead of the older generations in this matter. The survey found that only 9 percent of youth aged 21 to 24 years take the decision to buy a house on the advice of their friends or acquaintances, while the rest of the youth take the decision on their own based on their research. In contrast, 14 percent of people aged 50 to 60 and 11 percent of people over 60 years of age still depend on the advice of others for such major decisions.