Financial Planning For Buying A House In 2024 (Expert’s Advice)

 

Why Right Financial Planning For Buying A House Is A Must?

64% of the population in India was seeking to buy a house in India in 2020. And in the next year, it reached 82%.
If you are also one of them then you are at the right place now. Because inappropriate financial planning for buying a house in India may make you regret it in the future.
If you feel like you have already missed the opportunity then you need to know this fact:

“Between 2023-2028, the Indian real estate market is expected to have a (CAGR) growth rate of 9.2% as per the report”

However, the real estate industry has already hinted with the dramatic changes in the past few years. Eco-friendly development, gated communities, landscape planning, addition of facilities, tax benefits, lower mortgage rates, etc. are some of the latest developments in the real estate sector. So, now is the right time to buy a house with the best financial planning to effortlessly manage the necessary factors.

5 Advice For Financial Planning For Buying A House

Considering the affordable options, doing complete research, knowing your home loan eligibility, ways to save money, other costs, etc. are a few of the advice for financial planning to buy a house.

• Affordability: What Is Your Budget?
  Begin your financial planning for buying a house in India by considering how much you are able to afford.
  To know that you need to sort out the following factors:


• Income
  Consider your monthly income at first.


• Expenses
  List out your monthly expenses like housing, transportation, food, debt, etc.


• Savings
  Check the money you have saved for down payments & unexpected expenses.


• Clarification
  By understanding all the above factors, you can easily calculate the amount to afford for spending on a home.


• 30% Thumb Rule
  Try not to spend more than 30% of your monthly income on the housing costs like property taxes, EMI, homeowners insurance, etc.

Research: Start Searching The House Over knowing your affordability, you can start researching the latest housing market. Begin with considering the prices of houses in other cities & states, and analyze the trend there. While doing so, don’t miss out on the location, size & features of the house because these are the factors that mostly influence the price appreciation in the future.

Financial Support: Know The Home Loan Eligibility Once you find a house that is similar to your preferences then it’s time for you to know your eligibility for a home loan. If you are a salaried individual or in the past few months or years, you are banking with a selective bank then there is a chance of being pre-approved for a home loan. Typically, this lets you know the money you can possibly borrow & what is the monthly payment structure. And this will make your house-buying process effortless.

Savings: Through Monthly Down Payment Once you are planning for buying a house through a home loan then finding a possibility of saving through a down payment is a must.

Higher your down payment amount, lower the monthly EMI would be If you can save a small amount of money each month then it will reach an appreciable amount in the future. Out of multiple ways of saving a down payment, you can opt for creating a fixed deposit account, initiating a recurring deposit monthly & short-term fund investment.

Costs: Other Than Buying A House Other than the house purchasing amount, there are multiple other costs included such as home insurance, property taxes & maintenance. So, it is necessary to consider the following costs in the budget.

Tips: For The Middle-Class Group Of India Being under a middle-class section of people, you have to strategically plan the financial & practical aspects of buying a house in India.

To help you with this, we have listed the tips below to help you buy a desired home

• Choose Tier 2 & Tier 3 cities because the cost of living is comparatively lower here. You can also able to buy a large home for your estimated money.
• Choose a house that is currently in good condition. It shouldn’t require multiple repair works. This helps to save money in the future.
• Prefer buying a house that has a smaller land plot. Because it will help you to save property tax & maintenance costs.
• Buy a house where you want to live in for a longer period.
• Buying a house is one of the best ways of building wealth & security.

3 Precautions : Don’t Miss Out On This

1. Always Search For Grade A Developer Choose Grade A developers – Why? This makes you rest assured that the house you planning to buy is legal & it is constructed to achieve the highest quality standards. Grade A developers in India have access to selective expertise & they always prefer to collaborate with the best ones in the industry. The developer also offers a better customer experience, information at the fingertips, helps through loans & registrations, etc.

2. Don’t Ignore Your Preference For House Make sure that you don’t underestimate your preferences in the search for affordability. Buying a house is a kind of long-term investment, so choosing the right one with consideration of all your preferences & affordability is a must. Real estate market is so diverse, so not even finding a house that doesn’t match your preferences is impossible. So, try to explore the latest real estate trends across the states in India. For ex. start with properties in Mumbai, Bangalore, Chennai, etc. because the following states have shown a better price appreciation YoY.

3. Don’t Be Too Hurry To Buy A House With a multitude of housing options available, finding the right one can be daunting. However, rushing into a decision often leads to subpar living conditions due to a lack of consideration. To ensure a quality home purchase, take time to research reputable developers and maintain a checklist of essential features. This includes outdoor space for children to play and desirable amenities.

To Know About Thane Real Estate Development Contact Us at 022 2580 6868

What Are the 8 Effective Tips to Buy a House in India?

 

Consider the following tips for buying a house in India:

1. Assess Your Financial Health.
   Before you proceed to purchase a new home, assess your financial health. This assessment is necessary as you must remain prepared for buying a house and its ongoing expenditures. This assessment will help you to determine whether you are financially ready to invest a lump sum in purchasing a house. Here are some of the ways you can check your financial stability:


• Check Your Savings
  Purchasing a home requires considerable upfront expenses, including closing costs and down payment. You should have funds saved to meet not only these expenditures but also these will serve as emergency funds. Besides, you must keep your savings in an accessible account that provides a regular return so that you can get the funds quickly whenever you require to meet any financial needs.


• Evaluate Your Spending
  Analyse your monthly expenses, which include costs you incur in purchasing utilities, entertainment, food, etc. This evaluation will help you to assess how much you can afford to repay a home loan.


• Check Your Credit History
  You must maintain a healthy credit history and a desirable debt-to-income ratio. Lenders nowadays prefer to restrict housing expenses to 30% of an individual’s total income. Exceeding this figure can be a concern for lenders to sanction a loan. Though, this percentage may vary based on the local real estate market.
  
  Assessing all these pointers will assist you in understanding how much you can afford to buy a home. Depending on the affordability, create a budget that fits your both financial and housing requirements.


2. Check the Location
   It is important to look at the locality and location around the house. It is ideal to purchase a house in an area adjacent to a city’s prime location where the property value is not that high. Avoid buying a house in a location that is yet to be developed with proper infrastructure to avoid inconvenience in the future


3. Determine the Type, Size, and Features of a House
   Determine what kind of housing property you need – a conventional single-family house, a house with two to four units to accommodate multiple family members or other types of houses. Apart from it, ask yourself whether you are buying a house based on size or accommodation. Remain cautious because when you buy a house based on the size, the usable area does not expand in a similar proportion. Finally, you can check on a real estate website to get an idea about the costs and availability of features that are crucial for you, such as bathroom and kitchen layout.


4. Choose a Trusted Builder
   Always choose a reputable builder dealing with the construction and design of your new home. You should not get lured only by the aesthetic component of a housing property. Instead, you must also pay attention to the construction specifications and materials to avoid hassle later.


5. Verify the Resale Value
   Often property buyers do not pay heed to the resale value of a property and solely focus on its price and prime location. If you purchase a property without considering its resale value, then your investment may not be worth it, as your house's selling price will be lower than other homes in the area.


6. Know the Eligibility Criteria to Qualify for a Home Loan
   Purchasing a home requires a considerable investment. Therefore, you may rely on external financial assistance through a home loan. So, before borrowing a home loan, you must check the eligibility criteria with a home loan lender.
   
   The eligibility parameters of a home loan usually depend on your income, repayment capacity, age, and existing debt. However, eligibility criteria may differ with each lender. The loan amount you can borrow also varies with RBI regulations or different banks.


7. Analyse Additional Costs
   When you are planning your budget, you must consider additional expenses. Such costs include your property’s market value and stamp duty charged on it. To know more about them, get in touch with a Ready Reckoner to identify your valuation and sub-zone.
   
   Besides, you need professional assistance to buy a house. For that, you need to bear certain charges imposed by a mortgage broker, real estate agent, lender, land surveyor, home inspector, or lawyer. Apart from these expenses, check the maintenance and parking charges.
   
   if any Additionally, you must also safeguard your investment with property insurance. This will further help you in availing financial protection against issues with property titles, legal problems, or other damages. So, you must also keep aside some funds to purchase the same.


8. Read the Property Documents Carefully
   Another tip for a first-time home buyer is that one must carefully read and understand all clauses, implications, and penalties mentioned in a document. For example, note if there is a penalty clause for delayed EMI payments due to some circumstances, hidden charges, delivery date of the housing property, etc. Verifying all these details before signing the final agreement is essential to avoid problems later.
   
   Several individuals aspire to purchase their dream house. However, often they cannot understand which path to approach. If you are facing similar issues, follow these tips for buying a new home as mentioned above to get a clear idea.

Source: www.godigit.com

Dream Homes in India: A Step-by-Step Guide to Finding the Ideal Location

 

Introduction
Choosing the ideal location for your new home in India is a thrilling yet intricate endeavor. It involves more than just selecting a place to live; it's about building your dreams and creating a haven that you and your family can truly call home. This comprehensive guide will lead you through the vital factors to consider when purchasing your new home. By the time you finish reading this article, you will possess the knowledge and tools necessary to make a confident and well-informed decision about where to establish your new home.

1. Budget: Laying the Foundation
   Commencing with the basics, establishing your budget is crucial. Before delving into the allure of various locations, it's essential to be realistic about how much you can comfortably afford. India presents a diverse range of housing options, from affordable to luxurious, and setting a budget is the initial step in the decision-making process. Understanding that property prices vary significantly across regions underscores the importance of defining your budget early on.


2. Accessibility: Navigating Daily Life
   When selecting a location, accessibility is paramount. Proximity to your workplace, schools, hospitals, and other essential amenities can significantly impact your day-to-day life. In India, where traffic congestion is a genuine concern, finding a location with good connectivity and transportation options is crucial. Additionally, areas with easy access to public transportation can save both time and money in the long run.


3. Safety and Security: The Bedrock of Well-being
   Safety is a top priority for everyone. Opt for neighborhoods with active community policing or gated communities with security personnel. Assess the availability of emergency services such as police stations and hospitals in the vicinity. Consider the security features of potential homes, such as alarm systems, deadbolt locks, and security cameras, as they may vary from property to property.


4. Educational Institutions: Nurturing Minds
   For families or those planning to have children, access to quality educational institutions is paramount. Research the schools and colleges in the area, their reputation, and their proximity to your potential home. It's crucial to recognize that the availability of good educational institutions can significantly impact the resale value of your property.


5. Lifestyle and Amenities: Crafting Your Haven
   Consider your lifestyle and the amenities you desire. Do you prefer a serene suburban life or the vibrancy of city living? Whether you are a nature enthusiast, a fitness aficionado, or a food connoisseur, India offers diverse living options. Align your choice with your preferences and what brings you happiness, as your home should be a reflection of your lifestyle.


6. Infrastructure and Development: The Pulse of Progress
   India is in a perpetual state of evolution, with infrastructure development playing a pivotal role in selecting the right location. Investigate ongoing and planned infrastructure projects in the area, encompassing roads, public transportation, and commercial centers. Areas with thriving development are likely to witness an increase in property value over time, making them a potentially wise investment..


7. Environmental Factors: Breathing Quality
   India's diverse climate and geography necessitate consideration of environmental factors. Reflect on the weather and environmental conditions of the region you are interested in. Understanding the air quality and other environmental aspects can guide you in making an informed decision, safeguarding your family's well-being in the process.


8. Resale Value: Investing in Tomorrow
   While purchasing your dream home is a present decision, contemplating its resale value in the future is crucial. Research property trends in the area to understand how property values have appreciated over the years. A location with a consistent history of property value growth can be a smart investment for the long term, providing financial security and potential returns.

Conclusion: Finding Your Home Sweet Home
Selecting the perfect location for your new home in India is a momentous decision that demands careful consideration. Recognize that your home is more than a structure; it's where memories are made and dreams come to life. Take your time to explore different options, considering your personal preferences and priorities. Evaluate the unique attributes of each location to make an informed decision.

Ultimately, the perfect location aligns best with your lifestyle, values, and aspirations. Trust your instincts, seek advice from those familiar with the area or professional real estate agents, and embrace the exciting possibilities that await you on this journey. Happy house hunting!

To Know About Thane Real Estate Development Contact Us at 022 2580 6868

Thane Insights: A Strategic Approach to Property Investment

 

Introduction
Welcome to the thriving real estate landscape of Thane, where opportunities for property investment abound. As a rapidly developing city on the outskirts of Mumbai, Thane has emerged as a hotbed for real estate enthusiasts looking to capitalize on its growth potential. In this comprehensive guide, we'll explore the key factors that make Thane an attractive destination for property investment, delve into the current market trends, and provide valuable insights to help you make informed decisions.

1. The Booming Real Estate Scene in Thane
   Thane's strategic location, excellent connectivity, and robust infrastructure development have fueled its real estate boom. With a surge in commercial and residential projects, the city has become a magnet for investors seeking long-term returns. Explore the various pockets of Thane witnessing significant growth, such as Ghodbunder Road, Kolshet Road, and Majiwada, and understand how these areas contribute to the overall appeal of Thane.


2. Investment Potential and Returns
   Dive into the potential returns on property investment in Thane. Analyze historical trends, rental yields, and property appreciation rates to gauge the profitability of your investment. Consider the diverse range of housing options available, from luxury apartments to budget-friendly homes, and discover the factors that can impact your returns, such as proximity to transportation hubs, educational institutions, and commercial centers.


3. Regulatory Landscape and Legal Considerations
   Navigating the legal aspects of property investment is crucial to ensuring a smooth and risk-free process. Gain insights into Thane's regulatory landscape, including property registration procedures, stamp duty, and other legal considerations. Stay informed about the latest updates in real estate laws to make well-informed decisions and safeguard your investment.


4. Future Developments and Growth Prospects
   Thane's growth story is far from over, with several upcoming infrastructure projects and developments in the pipeline. Explore the city's future prospects, including the proposed metro lines, infrastructure upgrades, and commercial developments that are poised to enhance Thane's real estate value. Stay ahead of the curve by understanding the long-term growth potential of the areas you're considering for investment.


5. Tips for Successful Property Investment in Thane
   Equip yourself with practical tips to ensure a successful property investment journey in Thane. From conducting thorough market research and due diligence to engaging with reliable real estate professionals, this section provides a roadmap for making informed decisions and maximizing your investment potential.

Conclusion:
In conclusion, Thane stands as a beacon of opportunity for property investors, offering a harmonious blend of strategic location, robust infrastructure, and promising growth prospects. By understanding the key dynamics, regulatory landscape, and future developments, you can position yourself for success in Thane's burgeoning real estate market. Whether you're a seasoned investor or a first-time buyer, the city's potential awaits those ready to unlock prosperity through property investment in Thane.

To Know About Thane Real Estate Development Contact Us at 022 2580 6868

Luxury Living Unveiled: Navigating 3 BHK Residential Flats in Mulund

 

Introduction
Welcome to the vibrant and thriving neighborhood of Mulund, where modern living meets tranquility. Mulund has emerged as a sought-after residential destination, and the demand for 3 BHK residential flats is soaring. In this comprehensive guide, we will delve into the reasons why Mulund is a prime location for homeowners and explore the finest 3 BHK residential flats available in this bustling suburb.

Mulund: A Glimpse into the Neighborhood:
Nestled in the heart of Mumbai, Mulund boasts a perfect blend of urban amenities and natural beauty. Its strategic location, well-connected transportation, and proximity to essential services make it an ideal choice for homebuyers. From reputed schools and hospitals to shopping centers and recreational spaces, Mulund has it all.

The Growing Demand for 3 BHK Residential Flats:
As families evolve and lifestyles change, the demand for spacious homes has surged. The 3 BHK residential flats in Mulund cater to the needs of modern families, providing ample space for comfortable living. Whether you're a growing family or someone looking for a versatile living space, Mulund's 3 BHK flats offer the perfect solution.

Amenities that Redefine Living:
One of the key attractions of 3 BHK residential flats in Mulund is the array of amenities that redefine the living experience. From state-of-the-art fitness centers and swimming pools to landscaped gardens and community spaces, these flats offer a lifestyle that goes beyond the ordinary.

Investment Potential and Future Prospects:
Mulund's real estate market is not just about comfortable living but also promises a sound investment. With property values steadily appreciating and several infrastructure projects in the pipeline, investing in a 3 BHK residential flat in Mulund is a strategic move for long-term gain.

Conclusion:
In conclusion, Mulund stands as a testament to the evolving landscape of Mumbai's suburbs, and its 3 BHK residential flats offer an unparalleled living experience. From the convenience of location to the luxury of amenities, Mulund has it all. Whether you're a homebuyer or an investor, exploring the real estate offerings in Mulund is a journey towards unlocking comfort and luxury in the heart of the city.

To Know About Thane Real Estate Development Contact Us at 022 2580 6868

Understanding Down Payments on Home Loans in India

 

Introduction
The accessibility of housing loans in India has undeniably facilitated property ownership for many. However, unlike in Western countries where banks often provide the entire capital to buy a home, Indian banks adhere to stricter norms, incorporating the concept of a down payment. This initial payment plays a crucial role in reducing the amount of borrowed money and serves as a testament to the buyer's commitment to the purchase.

Defining Down Payment:
The Oxford English Dictionary characterizes a down payment as 'a sum of money that is given as the first part of a larger payment.' In the context of real estate, a down payment is the upfront payment made for a high-value asset such as a house or a vehicle. This payment acts as an initial installment, mitigating the overall borrowed amount.

Loan-to-Value Ratio Norms in India:
The Reserve Bank of India (RBI) introduced the Loan-to-Value (LTV) ratio as a risk assessment tool for evaluating a borrower's eligibility for a mortgage. This ratio is the proportion of the mortgage amount to the appraised property value. Over the years, the RBI has set limits on the LTV ratio, ensuring prudent lending practices.

In 2010, the RBI established an upper limit of 80% for housing loans exceeding Rs 20 lakh and 90% for loans below Rs 20 lakh. Subsequently, in 2015, the LTV ratio of 90% was permitted for housing loans up to Rs 30 lakh, particularly benefiting the affordable housing category. For other property categories, the LTV ratio remains capped at 80%.

Calculating LTV:
LTV is calculated by dividing the loan amount by the property value. For instance, if a property is valued at Rs 50 lakh and the bank approves a loan of Rs 40 lakh, the resulting LTV is 80%. This calculation ensures that the loan amount does not exceed the stipulated LTV ratio set by the bank.

The Necessity of a Down Payment on Home Loans:
Given the risk weightage norms, banks are authorized to offer only a certain percentage of the property value as a home loan. While the RBI allows a 90% LTV ratio for affordable housing, buyers of properties in other categories are limited to an 80% LTV ratio. Consequently, a down payment becomes essential to bridge the gap between the sanctioned loan amount and the total property cost.

For instance, if you are purchasing a property worth Rs 30 lakh, the bank can extend a home loan of Rs 27 lakh (90% of the property value). However, if the property is priced at Rs 50 lakh, adhering to the 80% LTV ratio, the bank will provide a loan of Rs 40 lakh. The remaining Rs 10 lakh becomes the down payment, illustrating its significance in property transactions.

Arranging a Down Payment:
To fulfill the down payment requirement, buyers typically tap into their savings, including funds from fixed deposits, recurring deposits, and provident funds. Seeking assistance from family members is another option. While personal loans may seem like a quick solution, experts caution against this approach, as it can elevate the overall cost of acquisition.

Planning for a down payment requires meticulous consideration, emphasizing the importance of saving over time. Rushing to secure a deal may lead some buyers to contemplate personal loans, but this is discouraged due to the potential increase in acquisition costs.

Ideal Down Payment Amount:
Determining the ideal down payment amount involves assessing one's financial condition. While some lenders may stipulate 20% to 30% of the home's purchase price as a down payment, many offer more flexible options, sometimes as low as 5%. The Reserve Bank of India encourages borrowers to inquire about the lender's down payment requirements and negotiate for favorable terms.

Experts advise against paying only the minimum down payment, as a larger upfront payment instills confidence in the lending institution, making them more inclined to approve the home loan. Additionally, a substantial down payment results in a smaller loan amount, leading to savings on interest payments. However, it is crucial to strike a balance, as depleting all savings for the down payment may leave the buyer with limited liquidity for future needs.

Conclusion:
In conclusion, understanding the concept of down payments on home loans is crucial for prospective homebuyers in India. The intricate interplay between loan-to-value ratios, RBI regulations, and individual financial considerations underscores the need for careful planning. While a down payment signifies commitment and influences the loan approval process, finding the right balance between the down payment amount and maintaining financial flexibility is key to a successful and sustainable home purchase journey.

To Know About Thane Real Estate Development Contact Us at 022 2580 6868

Unveiling the Lucrative Realm of Property Investment in Thane: A Comprehensive Guide

 

Introduction
In the ever-evolving landscape of real estate, Thane has emerged as a hotspot for property investment, captivating the attention of astute investors seeking promising returns. This article delves into the myriad opportunities and facets of property investment in Thane, unraveling the city's potential as a lucrative destination for discerning investors.

1: The Booming Real Estate Scenario in Thane
Thane, once considered a suburban satellite of Mumbai, has undergone a remarkable transformation into a thriving real estate hub. With its strategic location, excellent connectivity, and burgeoning infrastructure, Thane has become a magnet for property investors looking to capitalize on the city's growth trajectory.

1. Location Advantage:
   Thane's strategic location, nestled between Mumbai and Navi Mumbai, positions it as a prime real estate destination. Proximity to major business districts, educational institutions, and healthcare facilities makes Thane an ideal choice for property investment.


2. Connectivity:
   The well-established network of roads, railways, and upcoming metro lines ensures seamless connectivity within Thane and to neighboring areas. Investors benefit from the city's accessibility, contributing to the overall appreciation of property values.

2: Exploring the Types of Properties in Thane
Thane offers a diverse range of properties, catering to the preferences and requirements of different investor profiles. Understanding the various options is crucial for making informed investment decisions.

1. Residential Properties:
   From luxurious apartments to gated communities and villas, Thane presents a plethora of residential options. The city's development includes projects with modern amenities, green spaces, and a focus on a sustainable lifestyle.


2. Commercial Properties:
   Thane's commercial landscape is evolving rapidly, with the establishment of business parks, IT hubs, and commercial complexes. Investors eyeing commercial spaces can capitalize on the city's growing business and industrial activities.

3: Factors Driving Property Investment in Thane
Several factors contribute to Thane's attractiveness as an investment destination. Investors should consider these factors to gauge the potential returns and long-term sustainability of their investments.

1. Infrastructure Development:
   Ongoing and planned infrastructure projects in Thane, such as road expansions, metro connectivity, and the development of smart cities, play a pivotal role in enhancing the city's real estate landscape.


2. Employment Opportunities:
   The presence of industrial zones and the growth of the service sector in Thane create a conducive environment for job opportunities. This, in turn, fuels the demand for residential and commercial properties.


3. Educational and Healthcare Facilities:
   Investors often prioritize areas with quality educational institutions and healthcare facilities. Thane boasts reputable schools, colleges, and hospitals, adding value to the overall appeal of the region.

4: Tips for Successful Property Investment in Thane
Navigating the real estate market requires a strategic approach. Here are some practical tips to ensure a successful property investment journey in Thane.

1. Research Thoroughly:
   Investors should conduct in-depth research on the current market trends, property values, and future development plans in Thane. This knowledge forms the foundation for informed decision-making.


2. Partner with Reputable Developers:
   Collaborating with established and reputable developers mitigates risks associated with property investment. Investigate developers' track records, project delivery timelines, and customer reviews before making a decision.


3. Consider Rental Yields:
   For investors looking for rental income, analyzing potential rental yields is crucial. Thane's growing population and demand for rental properties make it a promising market for those seeking regular returns on their investments.

Conclusion:
In conclusion, Thane stands as a compelling destination for property investment, offering a blend of strategic location, robust infrastructure, and diverse property options. Investors willing to explore and capitalize on the city's potential can unlock rewarding returns in this dynamic real estate landscape. As with any investment, thorough research, strategic planning, and a long-term perspective are essential for success in Thane's burgeoning property market!

To Know About Thane Real Estate Development Contact Us at 022 2580 6868