Keeping The Financial Aspects In Mind Before Buying The House

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Education & Training with Multiline Sokution

A house is more than just a status system and security for a person and his family. It is also an indication of your investment. The best way to ensure that your investment is reliable and secure is by researching the real estate market thoroughly. The decision of buying a home should always be backed by good financial planning. This article will help you to know those important financial aspects that you need to consider while buying a house.

1) Fixed Income:

This the first and foremost thing that you need to check while buying a property while availing a loan. As one is entitled to pay monthly instalments of their loan, it becomes extremely necessary for them to check whether their fixed source of income is secure or not. Also, along with the security, your income should be enough to get your loan EMI cleared easily while considering other anonymous monthly expenses of your family too.

2) Debt to Income Ratio:

This ratio can be easily assessed by dividing your monthly debt related expense by your monthly income. It will be easy to understand through a formula-

DI RATIO = MONTHLY DEBT AMOUNT / MONTHLY INCOME

Having a good debt-income balance is considered to be good, also your DI ratio should never be more than a value of 0.28 that means not more than 28% of your monthly income should be consumed to slash off for paying your overall debts.

3) Savings for emergencies:

This is a point that everyone should ideally follow irrespective of the fact that they are buying a house or not. Life is full of unexpected risks and emergencies, so you should always be prepared financially for any such sudden expenses. As no one can predict the coming problems but can surely secure themselves from getting affected by them

Talking about people who are planning to buy a house, it is very important to keep a security amount with themselves. Security can be in any form like property, jewels and other sources.

4) Property cost in specific locations

Location is one very crucial factor that can’t be overlooked while buying a house. We all want to invest money in our house in a way that its value increase with time. So, start evaluating all nearby infrastructural development of that locality. If the location consists of IT offices and reputed educational institutes or malls nearby, the prices of your house will automatically increase upon resale. For eg, flats in Mansarovar of Jaipur will have more resale value compared to flats in Sitapura. Hope you get the idea. So, invest your money smartly by choosing the right location.

5)  Transport Facility:

Many people ignore nearby transportation and public facility and then regret afterwards. Therefore, it becomes crucial to see if commutation from your location to marketplace is easy. A house with a better office/school/college connectivity can save a lot of money and time. Your expenses for diesel/ petrol are saved that way. If you are planning to shift to a metropolitan city, look for a place from where metro station is easily accessible to you.

I hope all of the above points were helpful for all those who are planning to buy a home soon. Do let me know your thoughts about the same through the comment section below.

Happy Home Hunting!

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