Focus on Money While Buying a Property
Dec 31, 2016 Home Trading Steps
Buying a dream home is one of the most important targets for most of the people in their late 20s or early 30s. Everyone work hard day and night in order to accumulate funds for purchasing their dream property. One takes huge amounts of a loan from the lenders for the said purpose. However, as soon as the EMIs commence, we feel an urge to tighten the purses’ strings as our savings get stretched to their limits. It is this time when the newly purchased property seems to be a burden upon us.
Hence, it is important to always focus on the money part while purchasing a property. At all times, never should one overestimate his/her loan repayment capacity.
Let us discuss some of the measures potential home buyers can exercise to keep the burden at par:
Hence, it is important to always focus on the money part while purchasing a property. At all times, never should one overestimate his/her loan repayment capacity.
Let us discuss some of the measures potential home buyers can exercise to keep the burden at par:
- Try to borrow as minimum loan amount as possible: They say buy a home when you are young. Although this logic isn’t entirely wrong, you get tied to the bank for repaying your loan for several years thereafter. Also, the ever increasing interest rates play a huge role in adding burden to your expenses. To overcome this problem, everyone should target to borrow as much minimum amount of loan as possible. You should try to arrange funds for buying a home from your savings or any other investments. Keeping the loan amount minimum will result in low EMIs and short repayment period.
- Requesting loan from near and dear ones before bank: While there are many benefits of taking a loan from a bank such as tax benefits, exemptions to name a few, it is also costly enough due to high interest rates. So, one can ask his/her family members in order to borrow a certain amount from them for buying the property before opting for a home loan from a bank. A major share of the EMI is the interest component, hence, it takes a lifetime to return the loan amount to the bank. Paying back debt to the family is thus much easier.
- Choose your priorities correctly: Buying a property in a city is very different from buying the same in far off suburbs or a rural area. Parameters such as space and convenience play a major role in deciding the most suitable property. Flat at a prime location in the city will cost you a fortune and will only give you a tiny apartment in return. Although cities do provide several work opportunities, mass public transport, medical facilities it also comes along with traffic and pollution problems. In contrast to this, a property in far off place from the city will be cheaper with nature at its best as an added advantage. Hence, it is very important to give thought in choosing the right priorities before making any move to purchase your dream home.
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