Tips To Buy Your Dream Home
An unwritten rule of life said that you could only plan to buy your dream home after marriage and settling down. On the contrary, today, innumerable youngsters are warming to the idea that it is better to start early when it comes to the biggest investment in their lives. Here are some good tips for you that you shall find useful if you are looking to buy a flat or a home.
- Build down payment funds by being financially disciplined
You need to be financially very sound in order to raise the money for the down payment of your flat. Remember that you will have to pay the down payment amount from your own funds; a bank will not give you the loan for the down payment. Now, the down payment will typically be 10% – 25% of the property’s market value. So if a 2BHK costs 80 lakh, you will need to fork out 8-20 lakhs. Avoid spending wastefully, pay your debts, and try to expand your income.
- Keep to the budget.
You have to keep an eye on where your monthly income goes. Do you pay rent, dine out, go shopping, or otherwise have too much invested in entertainment? You have to jot down your expenses per category and figure out how you will go about saving money so that you have a good budget. You can take the help of numerous apps that will help you figure out your budget. Doing so will assist you in cutting out wishful expenses and save money for your down payment for upcoming affordable housing.
- Carry out extensive research on your dream flat
What kind of home are you looking for, an apartment or a condo? What is the number of bedrooms you want? What kind of amenities- parking for the car, a swimming pool, or even a cub house? What will be the situation of the apartment, right in the heart of the city or on the outskirts? Answering these questions can lead you to the actual cost of the apartment. If you know that, you will be able to save better. Only, keep in mind that you go for an apartment that you can afford without straining with the EMI’s later on.
- Invest in Fixed Deposits and Mutual funds
Setting aside a part of your savings in a savings account may not be enough if you have an eye on upcoming affordable housing projects in Gurgaon. You need to park your savings in such a place where it will grow, an investment. A savings account will give you a max of 6% p.a., while a recurring deposit fetches you 7%-8% before tax. In stark contrast, investing in a mutual fund can bring you anything between 10% and 15%, even more, if you choose the right fund. While I agree that mutual funds are risky, they can beat inflation at the end of the day.
- Keep aside money for your future EMI’s
When considering the best affordable housing projects, remember that they have a big price tag. You will be looking at years of paying EMI on your dream flat after assuming ownership. Use an EMI calculator to figure out how much money you need to put aside each month for repaying the loan on your apartment. When you get to the figure, channel the savings you achieve every month towards payment of the EMI much before you take possession of the flat. This way, you will be ready beforehand.
- Prepare yourself for others, different expenses.
There will be other expenses apart from the down payment you pay when you buy a flat. These are the stamp duty (5%-7% of the value of the property), the cost of registration (1%), the title deed charge (0.1% of the amount of the loan), expenses for interior decoration, and electricity connection costs, water supply charges and more. It is difficult to figure out beforehand the exact amount of these miscellaneous charges, so if, as earlier stated, you have EMI savings, it will come in very useful.
Mahira affordable housing has some of the best apartments on a budget that you can find in Gurgaon. If you are well prepared financially, it will not be difficult to take a flat here.
