Property Planning & Loan

My 1st Home – When & How do I plan?

Buying House-How to plan

Amit and Neha are a perfect love story. They met in a college and it was love at first sight. The college years went by dreaming about their life together, getting married and having their dream home. They used to spend hours imagining how they would decorate their sweet home. After completing their studies and starting their careers, they decided to take the plunge and get married. As their parents happily agreed, the next step was to own a dream home. But they realised that having their dream home was not easy. All these years they dreamed about house but never did the homework of buying a house. They consulted a financial planner who guided them about buying a new home.

First and foremost is to look at the savings that has been made to buy the house. Since they were both salaried pooling of their savings could help them to set aside higher sum for initial payment of the house. Besides this, they looked at the options of borrowing from parents and friends who could lend them for a short duration. They figured out that they will have to save for at least two years before they could decide to buy a house.

The monthly savings also gave them an idea of how much share of their income can go toward payment of home loan. Ideally a share of around 25% of combined income would ensure that there is enough balance to take care of their monthly expense. Based on the prevailing interest rates and longer-term loan of 20 years could help them to know the amount of loan they could avail to buy a house. The financial expert can guide them to regarding the loan procedure like selecting the housing loan company, type of interest rate (fix or float), Interest subsidy under government schemes.

Based on the loan amount, the value of the house can be arrived and then selected based on their budget. Since the New regulations like Real estate regulation Act has protected the rights of buyers they could go for under-construction property that could be ready in couple of years. Here the selection of developer with good track record and flexible payment plan can help them to pay later as the project gets completed. This could give them time and resources to get married as well time to do more savings as their incomes increase. Once the property has been shortlisted completing the paper work will be the next important task which takes time as well as resources.

The journey from dream home to owning it in reality sounds arduous, but the joy of stepping in your own house with your beloved is immeasurable. This not only requires to dream from your heart but adequate financial planning to make it happen.

7 Top Home-Buying Mistakes People Often Make

7 Top Home-Buying Mistakes People Often Make

Insanely low mortgage interest rates—and the knowledge that they’ll probably go up again—make a lot of people feel like it’s time to buy a house right now. And maybe it is … if you go about it the right way.

Buying a home is a major purchase (to put it mildly), and there are plenty of ways to trip up. But don’t worry—we’ve got your primer right here.

1. Don’t … buy a house if you’re planning to move again soon.

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Live in own house via “Home Loan” or Live in a “Rented” house? What should one look at?

rent-vs-buy

This is a scenario which one goes through while relocating to a new place, mainly to metro cities like Mumbai, Delhi & Bangalore. It’s been everyone’s dream to have their own property, but without any guidance in place, making us feel helpless.

One hand you have hordes of brokers who are ready to show you apartments, where you just have to give them an indication on your budget. On the other hand you have banks offering home loans based on your eligibility & make offers look very attractive.

But both these parties will never ever advice what is good & right, give you a cost benefit analysis, how one should look at buying a property or even renting? Broker makes cool 1% on the purchase transaction. Banks has a spread of 3% to 5% on your interest payment & makes handsome money by lending.

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