In India, buying a home is a significant achievement, and for some, it is a milestone in life. If you are planning to buy a new home, read on to get a few essential tips.
A home is a necessity for all. But buying a home requires significant investment and proper planning. If you are planning to buy a new home in 2020, here are a few essential tips that can help you get a step closer to getting the keys of your dream home.
Decide a Budget
The prospect of buying a new home can be exciting but don’t go overboard with excitement. Buying a home is a significant investment, and therefore you must have a budget plan for it. Based on your current financial condition, family needs, savings, and the expected growth in income in the future, you must decide how much you can afford to spend. This will not only help you narrow down your choice of properties but also help you determine the home loan amount you wish to apply. While deciding the budget, make sure to consider all the expense you may incur immediately after buying the house like interior designing, registration fees, etc.
Choose the right location
Choosing the right location is as important as selecting the right home to suit your needs. It is better to look for a home that is located adjacent to the prime location. Generally, the prices at such locations are comparatively lower. The location will also have a significant impact on the resale value.
Know about the rental rate in the location
If you are planning to buy a property for investment purpose or to rent it out, it is better to buy a house in an urban neighbourhood so that you can fetch good returns through rent. Knowing the rental rate in the area will help you choose the right location and property.
Know your eligibility
Different lenders have different eligibility requirements. So, make sure to check online the specific requirements of the lenders that you wish to approach. Generally, the lenders decide the eligibility based on factors like profession, age, repayment capacity, existing debt, and credit score. The eligibility factor also determines the maximum amount you can get.
Take advantage of the PMAY Benefits
The Pradhan Mantri Awas Yojana is an affordable housing scheme introduced by the central government of India. Under the scheme, the government provides a subsidy on the home loan interest rate. You can avail a subsidy of up to 6.5%.
You must know that you can avail the subsidy only if you are a first-time home buyer and that you or any of your family members don’t own a pucca house in any part of India. Today, many lenders in India offer home loan under PMAY. So, do your research well about the different lenders and choose the one that provides the best plan to suit your needs.
Invest in property insurance
It is crucial to safeguard your prized possession with proper insurance. It will provide you with financial protection against the damages that may occur to your home in the event of any natural disaster. Today there are many types of home insurance policies to suit the varying needs of the people and with different levels of protection. So, based on your specific needs, do your research well about the different insurance policies and buy the right cover to protect your home and your finances.