Real Esate

top 5 tips to buy your dream home

Buying Home…This is most of our dream. It needs huge of amount of  money and it eats most of our savings. However buying home or renting home which is the best option is  depends on person to person. We Indians see our own home as emotional attachment. These are the tips before you buying your dream home.

1. Fix your budget  for home

As buying home is the biggest purchase we do in our life time, so ensure to keep a budget. Always buy a home which is 4-5 times of your annual salary.  If you are earning 10L per annum , then you can look for 40L to 50 L property if you depends only on your salary and assuming you have no passive extra income.  Incase you purchase more than that , you must need to have huge amount to pay upfront, if not you need to pay more EIM every month, which is not good for your financial health.

2. Don’t get attracted by offers which builders are pushing us.

We are seeing many advertisements saying that today is the last day to get free modular kitchen if you book flat or get car with flat booking etc. Don’t get attracted by these offers. First decide location which is suitable for you and search for  projects . Visit the property shows and try to find out the price in that area many builders. After that visit that builder previous ventures to know the quality of construction which is important than the offers by the builders to push their projects.

home_13. Search the best bank which is providing less Interest rate.

Once you decide the venture, visit the banks and compare the interest rates. Also  check for processing fees and any penalties on part payment or pre payment charges. Once you deiced the banker , then you can apply for loan which is fixed or floating based on the current situation. As of now interest rated are going to come down . So its better to take floating rate than fixed. So take a call based on market situation.

4. Don’t keep more than 40 % of your salary  as an EMI.

Keep in mind that EMI should never cross 40 % of your take home salary. If you are earning 1L then keep 40k as EMI and use the rest of amount for your house monthly expenses and mainly to reach other financial goals like retirement planning and child education and children marriages.

5. Legal verification of your property

This is quite important to verify the property documents by  lawyer. These days we are seeing many of building don’t have LRS (Layout regularization )and BRS (Building regularization scheme) paid for them. So if you take that properties , you need to pay extra money from your packet  make it regularize legally. So dont believe brokers/agents blindly, it’s always better to take advice from lawyer.

Hope  this tips will be helpful for you while buying your dream home.

Enhanced by Zemanta

About Sravanthi

Hi ..I am Sravanthi, working in IT field and i'm more passionate about managing personal finance. I am writing this blog to help people especially salaried employees to invest their money wisely . Check out the articles ..happy reading :)


No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Join 9 other followers

Blog Stats

  • 10,152 hits
%d bloggers like this: