Buying Home Tips
It would not be wrong to say that most of us dream of buying our own house. Rather, according to the Bank Market Aspiration Index 2019, the most important goal in the life of 1,800 salaried women and men living in 12 cities is to buy a house. However, it is very expensive to fulfill this dream because it spoils the balance of our other expenses and financial life. In such a situation, the question arises that to what extent should you go to buy a house, which does not affect your other dreams and personal finance. You should not make these mistakes while buying a house.
1. Spend your entire savings
We constantly save so that it can come in handy in times of need. What will be the need for buying a house and in such a situation it is common to use your savings to buy a house. Especially things for which you can not take loan such as down payment, registration and interior decoration etc. However, spending your emergency fund for important things like down payment is also not a good thing. By doing this you may have difficulty in future.
2. Loans: Do not check offers from different lenders
After searching for months, you get a favorite property in your budget and in the process of buying a house quickly, you take a home loan from the lender without first checking.
Many banks and financial institutions offer home loans. In such a situation, the first offer you get is not necessarily the best offer. When taking a home loan one should always compare the interest rates, loan tenure, low penalty rate, quick processing time, better prepayment rate and flexible rules. Taking a loan in haste without checking can cost you dearly in the future.
3. Taking an expensive loan with your financial capacity
Often, people buy expensive houses with their financial capacity, assuming a one-time cost. After this, they find it difficult to pay EMI and maintenance costs such as cost and also have an impact on other expenses. Therefore it is always better to buy such a house, which you can afford at the moment and also fill its EMI in the long term. In the coming time, your income will increase but at the same time, your expenses will also increase. So buy a house according to your current capacity. You can also repay your loan early in the future with your extra savings.
4. Not keeping down payment
When buying a home loan, you have to make a down payment of 10 to 25 per cent of the property's value. If you are thinking of taking a loan of 50 lakh then you should have 5 to 12.5 lakh ready. Apart from this, you should also keep in mind the expenses for which loans cannot be taken such as registration, stamp duty, banama, GST, brokerage, interior decoration, electrical fittings, water supply etc.
So start doing financial planning many months in advance so that you do not need to withdraw money from your retirement fund or emergency fund. If you want, you can also start investing somewhere to prepare this fund.
5. Compromise with other financial goals
Buying a house is a dream of many people, but it is not just their only dream. Many people invest a large part of their income in the affair of buying a house, which later makes it difficult to collect money for things like children's higher education and retirement. In the end, either they get depressed or they have to take a loan or even worse that they have to sell their house at cheaper prices.
Lastly, there is no need to compromise with your other financial goals to buy a house.
1. Spend your entire savings
We constantly save so that it can come in handy in times of need. What will be the need for buying a house and in such a situation it is common to use your savings to buy a house. Especially things for which you can not take loan such as down payment, registration and interior decoration etc. However, spending your emergency fund for important things like down payment is also not a good thing. By doing this you may have difficulty in future.
2. Loans: Do not check offers from different lenders
After searching for months, you get a favorite property in your budget and in the process of buying a house quickly, you take a home loan from the lender without first checking.
Many banks and financial institutions offer home loans. In such a situation, the first offer you get is not necessarily the best offer. When taking a home loan one should always compare the interest rates, loan tenure, low penalty rate, quick processing time, better prepayment rate and flexible rules. Taking a loan in haste without checking can cost you dearly in the future.
3. Taking an expensive loan with your financial capacity
Often, people buy expensive houses with their financial capacity, assuming a one-time cost. After this, they find it difficult to pay EMI and maintenance costs such as cost and also have an impact on other expenses. Therefore it is always better to buy such a house, which you can afford at the moment and also fill its EMI in the long term. In the coming time, your income will increase but at the same time, your expenses will also increase. So buy a house according to your current capacity. You can also repay your loan early in the future with your extra savings.
4. Not keeping down payment
When buying a home loan, you have to make a down payment of 10 to 25 per cent of the property's value. If you are thinking of taking a loan of 50 lakh then you should have 5 to 12.5 lakh ready. Apart from this, you should also keep in mind the expenses for which loans cannot be taken such as registration, stamp duty, banama, GST, brokerage, interior decoration, electrical fittings, water supply etc.
So start doing financial planning many months in advance so that you do not need to withdraw money from your retirement fund or emergency fund. If you want, you can also start investing somewhere to prepare this fund.
5. Compromise with other financial goals
Buying a house is a dream of many people, but it is not just their only dream. Many people invest a large part of their income in the affair of buying a house, which later makes it difficult to collect money for things like children's higher education and retirement. In the end, either they get depressed or they have to take a loan or even worse that they have to sell their house at cheaper prices.
Lastly, there is no need to compromise with your other financial goals to buy a house.
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