Is owning an apartment in Newtown one of the top aspirations in your life? But an investment in a house is a big and long-term ticket with lots of costs involved.
So right in here, we present for you-
An Expert Guidance For Realizing Your First Home Budget
Tips put together from real-life situations only
#1 Realize Own Real Affordability
The foremost step to figuring out. It is not wise to spend more than 30% of your take-home salary on loans. You also need to see how much savings you have in the bank and if there is the possibility of more money/additional sources of income that you can add to your monthly income.
Do not buy a house that is beyond your budget, some people make the mistake of buying a house with the aim to sell it and clear the loan and enjoy profits. This is very risky decision as there is a chance that the market may crash.
You need to buy a home that you can afford today, and not in the future. Buying a house beyond your budget will also mean many months of struggling with finances until you are compelled to sell the house.
You will not have enough money to live each month comfortably, and in case there is an emergency you won’t have the resources you need to manage.
#2 Get Practical With Down Payment
A figure of anywhere between 15% -30% of the cost of the house needs to be paid as a down payment.
For example- If a home costs Rs 50 lakhs, the down payment will come to around Rs 7.5 – Rs 15 lakh.
No small amount by any standards. It is good to keep in mind that the bigger the amount of your loan, your down payment amount would proportionately raise. Think about how you plan to raise the amount needed for the down payment of the loan.
A savings of Rs 2 lakh per year invested at a rate of 10% for roughly 3.5 years would be needed to pay for a down payment of Rs 7.5 (approx.).
#3 Focus On The Forecast
Before buying a house in 2022, you need to study the housing market predictions for 2020 and the housing market predictions for 2019. You can also look for real estate forecasts of the city and locality you are looking at.
A good real estate forecast can help you place a safe bet on localities that are always in demand, localities that have increasing demand due to infrastructure and other factors, and localities that are witnessing a sharp fall in demand.
You can even try to talk to veteran realtors & representatives of reputed building houses to find out their views and takes on the housing market outlook.
#4 Get Set For The EMIs
Once you have crossed the hurdle of funding the down payment amount, you then face the big question of getting the loan approval and the further question of EMI payments. The maximum recommended percentage of your EMI to net income is 30%. However, certain lenders also extend this percentage to 40.
All said and done, 30 or 40%, it is you who is going to bear the burden of EMIs, so it is important to evaluate not only your current financial position but the entire tenure of your loan.
Think of all possible scenarios. Is your spouse likely to stop working in the future? Are you looking to quit your job and take the entrepreneurial track? Are you looking to acquire a higher educational qualification? Or a family emergency may come up.
Remember, the EMI cycle will continue to be payable despite any of the situations described here.
Feeling confident now? Then why wait to initiate own first home buying journey?
Drop a call to Team Realtech & gain just the Newtown apartment you wish for.
Waiting to cater the home of your desire.
