Is buying an apartment in Kolkata your one especial dream? So what’s necessarily stopping you to pursue that endeavor?
Your financial capacity, which you think may not suffice for the chic & spacious home your heart craves for? And taking a home loan that falls way out of your capacity will turn risky too.
Now, take a breath. Purchasing own dream home is very much possible at only the budget you have.
All you require is that of following
Some Conscious Steps For In Budget Home Buy
Getting curious? Let’s begin:
#1 Fix The Monthly Expenses
Where does most of your monthly income go? On rent, groceries, dining out, shopping, entertainment? Start analyzing this.
Categorize your expenses and determine how you’re spending your money and then make a budget. In this digital age, you don’t have to do anything manually.
There are many apps out there to help you set a budget. You can compare your income to expenses and track how you spend your money.
#2 The Under 30 Rule
You don’t want to get your heart set on a house that leaves you “house poor”, do you?
Therein, pursue the Money Under 30 mathematics, which depicts:
Mortgage payment should not exceed 28 percent of your gross monthly income
Housing payments should not exceed 32 percent of your gross monthly income
Your debt payments (including the new housing payment) should not exceed 40 percent of your gross monthly income
When you are clear on what you can afford, you can look at Apartments in Kolkata that are within accessibility.
#3 Think Well…Think Enough
Along with cherishing dream of own sweet home, be smart to sort out the details.
How many bedrooms do you need? What amenities are you willing to pay for – car parking, swimming pool, club house?
Where will it be situated – in the heart of the city or on the outskirts?
The cost of owning a house varies based on all (and more) factors mentioned above.
For example, a house in the outskirts costs way less than one in the city for the same square footage. Knowing these details means you’ll know exactly how much to save.
However, it’s crucial to set a budget that’s in line with your current repayment capacity.
At times many go for a dream apartment that they can’t really afford, and struggle with the EMIs later.
# 4 Save & Invest Too
Endeavor to invest (well, at verified channels only), whatever is there in your accounts – to gain good returns.
How come? Well, know that:
A savings account will earn you a maximum interest of 4% p.a.
A fixed deposit (FD) account will earn you interest starting from 6% p.a before tax.
Whereas, a recurring deposit (RD) account will earn you interest starting from 7%-8% p.a before tax.
In contrast, some mutual fund investments can offer between 10% and 15% (or even more), depending on the fund.
FDs and RDs are risk-free, i.e. they are not affected by market fluctuations.
Yes, mutual funds are risky and depend on market conditions, but they have the potential to beat inflation in the long run.
This, in effect, can play to your benefit. For you save today to buy own desired home in budget tomorrow.
And the same house will cost more tomorrow thanks to inflation.
Therefore, take risk to gain rewards.
Not that much complex if you get to plan, right?
Then begin today & when feeling ready, get in touch with Team Realtech. Trendiest Apartments in Kolkata are our expertise.
