If you plan to invest in real estate after turning 40, ensure a higher down payment to avoid high EMIs, at a stage when income stability may begin to wane

Buying a home in one’s late 20s or early 30s has been seen as a key financial milestone. However, an increasing number of buyers are challenging this notion, opting to rent longer and enter homeownership around the age of 40, often with a stronger financial footing.

Experts suggest that such buyers should aim to make a down payment of 40–50% of the property value, with 30% considered the absolute minimum to meaningfully reduce the loan burden. A lower down payment, they caution, can lead to higher EMIs at a stage when income stability may start to decline.

A discussion on Reddit highlighted how delayed homebuying is increasingly seen not as a regret but as a strategic choice shaped by income volatility, lifestyle preferences, and long-term financial planning.

Several buyers who delayed homeownership said staying on rent allowed them to build a sizable investment corpus during their peak earning years. One 40-year-old homebuyer, who recently purchased a 2BHK in a coastal town near Mumbai, said avoiding a long-term EMI early in life gave them the freedom to take career risks.

“Not having a home loan early on helped us quit jobs multiple times and build a location-independent business,” the buyer said, adding that their EMI today is lower than the rent they were paying after a steep hike. The shift, they noted, also enabled a better quality of life with cleaner air, less congestion and lower living costs.

Others shared similar views, arguing that renting in expensive cities while investing surplus income in equities delivered better financial outcomes. One user said they invested aggressively in stocks from their mid-20s to late 30s, then bought a villa in a gated community after 40, clearing the home loan within 5 years.

With fewer earning years left before retirement, he suggested significantly higher down payments to reduce long-term financial risk.

“Ideally, buyers in their 40s should put down 40–50% of the property value as a down payment. Even 30% should be considered the bare minimum to meaningfully reduce the loan burden,” Sadagopan said. A lower down payment, he said, can expose buyers to higher EMIs at a time when income certainty may start to decline.

For instance, for a ₹2 crore house, paying ₹1 crore upfront and borrowing the balance would be a safer option, resulting in an EMI of around ₹1 lakh. Factoring in household expenses and rent during the construction period, the family income should ideally be ₹3.5–4 lakh a month to remain financially comfortable, he said.

Plan EMIs around lifestyle, job risks, and retirement, experts say

Beyond down payments, Sadagopan stressed the importance of EMIs to cover lifestyle costs, such as children’s education, healthcare, and existing financial commitments. “People in their 40s are more vulnerable to income disruptions. They must keep a six-month to one-year emergency financial buffer that covers all EMIs and household expenses,” he said.

He also cautioned against taking on multiple loans simultaneously. “If someone is opting for a home loan, they should avoid big-ticket expenses like car loans that could stretch cash flows,” Sadagopan noted.

On project selection, he said ready-to-move-in options may be ideal for older buyers as they eliminate the burden of paying rent alongside EMIs, though availability and pricing remain challenges. Under-construction projects, however, can work if cash flows are predictable, since payments are staggered. “Ultimately, the choice depends on individual risk appetite and financial preparedness,” he said.