Want to buy a house, keep these five tips in mind
Usually the decision to buy a house is the biggest financial decision of our life. It requires a lot of planning and research, due diligence, and a very focused approach.
Want to buy a house, keep these five tips in mind
While buying a house, a wrong decision not only leads to financial trouble but in the current situation, it can also lead to harmful financial consequences. Along with this, it is also true that the interest rates of home loans are still at a record low level. At this time the price of houses has also come down. With this the realty market has become very attractive. Before you decide to buy a house, keeping these things in mind will make your path easier. Take look here.
Must have a stable and continuous source of income
When you plan to buy a house, it is important that you have a steady, steady and adequate source of income. There are many people who are facing difficulties in paying their EMIs due to the loss of their jobs or salary cuts due to COVID-19. While there is a temporary relief due to the moratorium on EMI, the overall loan load (amount) or repayment tenure is likely to increase. If you are planning to buy a home now, you must make sure that you have enough funds to pay off your entire loan on time. To avoid any trouble later, the best way would be to make arrangements for earning income from more than one source.
Maintain Contingent Fund
You will never be in a position of financial risk, that is not possible. Especially when the economy as a whole is still going through difficult times. To mitigate financial risks, you should have a sufficient contingency fund. This emergency capital should be sufficient to meet your essential financial needs, including your regular expenses and your EMIs, for at least eight to ten months keeping in view the COVID-19 crisis.
Ready to move property
Like other sectors, the Indian realty market is facing a lot of challenges due to Kovid-19. So, you may not want to buy the property right now as you may not like to wait for long to get the position. Though the Real Estate (Regulation and Development) Act, 2016 has been enacted, but under the unprecedented financial situation during COVID-19, you may have to be prepared to face a worse situation. In order to minimize the risk, the best option would be to consider a ready-to-move home as compared to a property under construction. Having said that, you need to take into account other factors like the premium of the ready-to-move property, the affordability of your home loan EME, and whether there are any discounts available in the current market. More info visit here.
Also check credit score
Most of the banks have linked their home loan with the credit score of the borrower. A higher credit score (typically 750-800) usually results in a lower interest rate loan if you meet other conditions as well. . It must be noted here that, due to high or low credit score, interest rate can vary by about 1% per annum. Even a small increase in the interest rate can make a big difference in your overall loan repayment in the long run. So, if you are planning to buy a house, you should check your credit score and decide if it is maintained at a higher level in order to get a home loan at the lowest possible rate.
Now or later
Should you buy a home now or later? This decision should be taken by the end-users keeping in mind the long-term perspective. In the current market, you can get good deals with discounts and properties available at your preferred location. There are also several tax benefits that you can avail if you buy your first home in the current market. So, if you are financially sound i.e. have a stable and consistent income and have enough margin money so that your contingency savings and other important financial liabilities are not affected, then it is possible that you can make a good profit in the current market. Don't want to miss out on the property deal. But, while protecting yourself from losses and not borrowing more than you can afford, do a thorough search for a property that fits your needs.