There is the time when we decide it time to buy our own house, we tend to start looking for houses straightway before evaluating our finances. Finance before buying a house is uttermost important subject as neglecting the same can result in bad investment or the worst bankruptcy and failure to future planning. We make the biggest mistake of hitting the street because of the excitement we have about the idea of buying our own house. Soon we hit the reality that we don’t have the finance to support our expectation and straight we hit the floor. So it is crucial to understand your budget, your purchasing capacity, financial security for the future and much more. Buying a house in India is a huge investment and with a sound planning it can be backed, avoiding emotional sentiment behind the purchase can make your purchase much more logical. In this guide, I will elaborate each point necessary to consider before even igniting the fire within with the idea of buying a property.
Home loan is the answer for the rank and file, but even that too can be a mistake if not properly planned. Taking a loan is easy but repaying them is the most difficult thing to do, making sure to cut on 30-45 percent of the household expenses after buying a home will get the job done for you.
It is important to understand that taking 80% of the loan amount from the bank will feel like a burden after buying the house. It is advisable to contribute 30%-40% down payment to avoid defaulting on the loan about. Keeping in mind that other expenses of buying a home will cost another 5%-10% on Stamp duty, registration cost and so on.
Accounting for liabilities, existing debts, regular source of income
Supposedly you have kids, existing debts or uncertain source of income, buying a home need you to make a list of all the expenses and the source of Income to evaluate the situation inch by inch.
In India majority of the population are belong to the middle-class section of the society. Buying a house is luxury to most of us (unless we have ancestral property), and considering the immense property price in India one simply cannot buy a flat before proper financial planning.
Axis Capstone will help you find your dream home without tripping on the finance, to know more on the same log into our website.