Conventional Ways of Saving Money While Buying a Property
Mar 07, 2017 Home Trading Steps
Buying a home is a great Indian dream, and why it shouldn’t be. It gives a peace of mind and a feeling of the settlement once you own your own house in the city. It also does save you the hassle from moving one apartment to another every few years. But all this also comes with a hefty price, which is mostly bank loan and the interest associated with it and the maintenance of the house. After buying the house, furnishing and decorating it is also an expensive affair, which leads the buyer to think, whether the property he bought is worth or not.
So how can a buyer save money whilst buying a house?
We discuss it here.
Keep the loan amount minimum:
Taking a huge loan amount from the bank or any finance company will also take a long to repay. Actually speaking, a buyer does not own the house until and unless every little penny of the loan amount is repaid. Earlier, people use to buy their house after they retired. They did not enjoy all the tax benefits that come with it; neither they had a chance to live in their own house. But they also did not carry a burden of loan throughout their lives. Buying a house is a cliché but it should totally be at the convenience of the buyer. But if an individual wants to buy a house at an early stage of life, try to keep the loan amount as low as possible and pay the rest from your own saving.
Think carefully about the comfort and area:
Living in metro cities comes with both positive and negative implications. While positive one includes better lifestyle, negative one includes smaller housing space and endless traffic. Land prices in big cities are so high that the buyer ends up paying a huge amount for a tiny apartment. While you take a huge loan keep in mind that your family need will grow and change with time. It is better to make sure whether you want to spend rest of your life in the big city or move to a smaller peaceful one after retirement, and then invest accordingly.
Taking a loan from family:
Taking a loan from a bank or financial company may incur you some tax benefits. But as the buyers have to pay back the loan in huge interest, the term ‘benefit’ might not be as beneficial as it sounds. With growing necessities of family, it may become difficult later in life to balance both loan and family needs. Before you ask the bank for a loan, try to weigh the options clearly and consider the resources you have in your family and approach them, if they can help you with the loan. Repaying family for a loan will be easier than repaying bank with huge interest.
So how can a buyer save money whilst buying a house?
We discuss it here.
Keep the loan amount minimum:
Taking a huge loan amount from the bank or any finance company will also take a long to repay. Actually speaking, a buyer does not own the house until and unless every little penny of the loan amount is repaid. Earlier, people use to buy their house after they retired. They did not enjoy all the tax benefits that come with it; neither they had a chance to live in their own house. But they also did not carry a burden of loan throughout their lives. Buying a house is a cliché but it should totally be at the convenience of the buyer. But if an individual wants to buy a house at an early stage of life, try to keep the loan amount as low as possible and pay the rest from your own saving.
Think carefully about the comfort and area:
Living in metro cities comes with both positive and negative implications. While positive one includes better lifestyle, negative one includes smaller housing space and endless traffic. Land prices in big cities are so high that the buyer ends up paying a huge amount for a tiny apartment. While you take a huge loan keep in mind that your family need will grow and change with time. It is better to make sure whether you want to spend rest of your life in the big city or move to a smaller peaceful one after retirement, and then invest accordingly.
Taking a loan from family:
Taking a loan from a bank or financial company may incur you some tax benefits. But as the buyers have to pay back the loan in huge interest, the term ‘benefit’ might not be as beneficial as it sounds. With growing necessities of family, it may become difficult later in life to balance both loan and family needs. Before you ask the bank for a loan, try to weigh the options clearly and consider the resources you have in your family and approach them, if they can help you with the loan. Repaying family for a loan will be easier than repaying bank with huge interest.
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