Looking To Buy Your First House: If you are planning to buy your dream house, and you are going to buy your property for the first time and you do not have any experience in buying property, then this news can prove to be useful for you. You must have taken the opinion of your family members about this, but even after listening to everyone’s words, you are not able to decide, people’s artificial words must be confusing you. In such a situation, seeing this news, you can easily decide to buy a house of your budget.
don’t decide in haste
If you are going to buy a house anywhere in the country, then you must know some basic things. Today, every person is in a job, he gets home loan easily, due to which he is planning to buy a house much earlier in his working life. Although there is nothing wrong in this either. Every person’s dream is to build his own house in his life, which he can call his home.
this is the biggest problem
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Today, people take the decision to buy their house quickly because home loans are available cheaper from the bank. The home loan rates were around 6.5 per cent and in some places even less. Due to the low interest rate, people were getting interested in buying a house. But due to the increase in the policy rates by the Reserve Bank of India (RBI), now home loan rates have come down to about 8.5 percent. And it is likely to increase further.
EMI became expensive
You can understand as if you had taken a home loan of Rs 50 lakh for 20 years at 6.75 percent interest. In this, you had to pay an EMI of Rs 38,018 every month, in total you repay the loan including interest of Rs 41-42 lakh. Now the same home loan has reached 8.5 percent, after which you will have to pay an EMI of Rs 43,491 every month, and you will deposit around Rs 54-55 lakh as interest.
Take a decision like this, are you ready to buy a house or not
Your home buying decision mainly depends on two factors, which you can take with great care, as well as you can understand like this.
- How much down payment can you give?
- How much EMI can you withdraw every month?
what is down payment
When you go for a home loan, you invest 20 percent in the property on your behalf. The remaining 80 percent money is given to you by the bank through home loan, and it is charged with interest. If you are planning to buy a house for Rs 75 lakh, then you will have to arrange Rs 15 lakh (20 per cent) from your side. This means that even if you are under some social pressure to buy a house, you still need to get money from somewhere. Suppose you are not able to arrange Rs 15 lakh, you have only Rs 12 lakh, then the bank will give you only Rs 48 lakh as home loan. Hence, your home loan budget should be Rs 60 lakh (and not Rs 75 lakh you are looking for).
EMI Capacity
You have to take a loan to buy a house. Before this, you have to decide how much money you can withdraw as EMI every month. You must assess it. In this, you can give only about 40 percent of your monthly income in installment. If your income is Rs 80,000 per month, and you can deposit 20 percent i.e. Rs 15 lakh as down payment for a house of Rs 75 lakh. Then you will have to pay 40 percent EMI i.e. Rs 32,000 per month. Now if you have taken a home loan for 20 years at 8 percent interest, then you will have to pay a monthly installment EMI of Rs 32,000, in which you can get a home loan of Rs 39-40 lakh. This Rs 40 lakh loan and your down payment of Rs 15 lakh is still not enough for a house worth Rs 75 lakh.
This is the option, work like this
First of all you get some options for buying a house, that should be understood. In this, you have to look at the down payment and low cost house, or the house in your budget. It has been seen on many occasions, both the husband and wife are in the job profession, then both together get out of this problem by taking a home loan. Taking a joint loan to further strengthen your loan file. This is a correct and accurate method for this case.
keep these things in mind
- Never use all your savings for the down payment. You should always have some money set aside for emergencies. What will you do when you suddenly need money for an expense and you have already spent everything for the down payment of the house?
- What would you do if you temporarily lost your job? Your income will stop, but EMI will not stop. In such a situation, you must save.
- If you are going to buy an under-construction home, you will not only have to account for the EMI but also account for the rent that you will be paying till you get the possession of the home.
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