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Factors to Consider Before Buying a Home at an Early Age
Buy house in India at an early age and unlock the advantages that come along with it. Let the home be an asset and provide one with great returns. Before you buy a house, a couple of tips help one make the right decision.
Down payment
Down payment is the amount that one pays after finalizing a house and could range between 10% and 25%. We, at HomeCapital, help you buy your first home by contributing up to 50% of the home down payment amount interest fee.
Budget
A budget should be made and kept in mind before buying a house. There are various ways to set a budget for work. Comparing your income to your expense can help you build a better understanding of spending money. One need not cut his/ her lifestyle expenses completely to stick to a certain budget.

Search for the Dream home
Everyone dreams of buying a house in India at some point in their lives. But with wanting to buy a house you need to know the house you are exactly wanting. The number of bedrooms, bathrooms, etc. The kind of amenities you would like to have in the place you are living- car parking, club, swimming pool, and many more amenities. Where would you like your home to be situated?
Owning a house and the cost of it varies around all the factors above. A house located in the outskirts of a city might cost minimal compared to one in the heart of the city. Hence, it is better to look at options and decide the kind of house you are looking for.
Keep aside money for the Future
Very few people buy a home without a home loan today and loans aren’t cheap either. One has to pay EMIs every month. There are a lot of EMI calculators online which can help one determine the amount of money he/she might have to pay for the EMI. Once you have an estimated figure as to what the total EMI could be, one should start saving and investing that particular amount every month before he/ she starts paying the EMI. This will only help one control finances and not build too much pressure in the homebuying process.
Other Expense
Leaving aside the down payment and home loan EMIs, there are a lot of other expenses too that are a part of the home buying process. These expenses are for things like- stamp duty, registration, memorandum of title deed charges, interiors of the house, electricity, water supply, home insurance, and a lot more things. It might be a little difficult at times to take into account all these costs hence, one should be prepared for these expenses too and save for them accordingly.
Credit Score
A credit score justifies an individual’s creditworthiness. With a good credit score, you can get a home loan at a low-interest rate compared to having a bad credit score. To improve your credit score, you should make sure all your outstanding dues are paid off completely and do not apply for too many credit products within a short period. Having a good credit note is like having a good image.
The right time to buy a new home?
One should look at the stability in the Indian real estate market, the decline in the property rate, the buyers’ market, and then decide to buy a house.
Right now with the second wave of Covid-19, the property rates have not only fallen but the government under RERA Act, 2016 is allowing a 20% discount on an estimated Rs. 2 crore home over and above the builders discount along with lowering the stamp duty, reducing circle rates, etc. making it an easier process for people to buy homes in India. All this makes it the right time to get into the market and buy a house, keeping in mind all the above factors.
Tax Benefits
Repaying a home loan allows one to enjoy tax benefits. Section 24 of the Income Tax Act, one can claim up to Rs. 2 lakh per year depending on the interest paid on the home loan. Section 80C of the Income Tax Act, allows one to claim up to Rs. 1.5 lakh per year on the principal repaid by you.
Conclusion
Buying a home is not as easy as one might think it is. With time, one’s income increases but so will his expenditure keeping in mind the financial commitments. Certain sacrifices made at a young age will only turn out to be the best returns in the future.



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URL : https://homecapital.in/

Blog ID : 266122

Category : Real Estate

Date Added : 9-6-2021

Tags : expenses | amenities