Being thorough and planning a budget can make it possible for young adults to buy their own house
Being a country driven by aspirations, pandemic or otherwise, owning a house has been a top priority amongst Indians. This can be due to different reasons however, one of the driving factors could be that Indians by nature are security-oriented and real estate is one of the most trusted investment options. In fact, this industry has been seeing an increase in the interest to buy properties despite the pandemic. So if you have been thinking about making a real estate investment, read up on some of the tips shared by experts from CommonFloor to understand the basic financial aspects of home buying:
Track your monthly expenses: Have you calculated the average amount of money you spend every month? If not, now would be a good time as it will give you a clear vision of your financial status in the present and future. Expenses like maintenance bills, personal loans, insurance, and utilities are basic and unavoidable. If you are a salaried person, check your income tax deductions as tax extracts a reasonable amount from our income in India. This will lay the foundation to determine your financial health and open your eyes to multiple ways of saving up as well. This is why tracking your expenses is necessary.
Analyse your debts: It is better to either pay off your existing debts in advance or reduce them before making a huge decision such as buying yourself a home. Whether it is your existing education/personal loan or the upcoming home loan, dealing with one large financial responsibility at a time will not suffocate you down the line. Another advantage of paying off existing loans in advance is that it will help in increasing your credit score, which makes future loan approvals easier.
Plan your requirement and budget: If you are looking to buy a house for rental investments, you can go by the market standards or as per your budget. But if you plan to live in this new house, understand your family requirements. Depending on whether you are a large joint family or a nuclear one, you can decide to choose from 1 to 3+ BHKs and villa options. This will help you map your budget as well. For instance, buying a house with a monthly income of Rs 50,000 is possible provided you have thoroughly evaluated your expenses, debts, and savings.
Be thorough and don’t be hasty: Narrow down properties that match your budget and requirements by doing multiple house visits if needed. In fact, you can even do site visits at the comfort of your home, thanks to the use of emerging technologies. Choose from readily available online video content like home video reviews and virtual house tours to get better online home buying experiences. You can even share these videos with friends and family before making the buying decision.
Hire a home inspector: While this concept is still in its nascent stages, you can seek expert advice from home inspectors before you finalise the property. They will help you examine the condition of the house by evaluating flaws, potential threats, and damages that can be missed easily. You can also hire an expert to vet any legal documents as well.
This article was authored by VP, Commonfloor, a Quikr Company
DISCLAIMER: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.