How should you do Financial Planning in 2024 to buy a House?

In the New Year, it’s not just about making resolutions. It’s an opportunity to start things off right for the whole year. You can set yourself up for a successful year by making smart choices about your money in 2024. 

Experts say that a good plan involves spreading your money out in different ways, depending on how long you plan to keep your money invested to buy a new home. 

When you are thinking of buying a new home in 2024, you need to follow a few tips for financial planning before purchasing new residential property.

Tips for Financial Planning in 2024

If you are thinking of buying a 3/2 BHK flat in Kolkata, then go through this blog. Here we’ll discuss how you should do financial planning in 2024. So, read on!

1. Figure out The Location Where you Want to Buy Home

If you want to buy a house, first think about why you’re doing it. Is it because you want to live there or just to make money from it? If it’s for living, pick a place that suits you and your family’s needs. Consider things like schools if you have kids, medical facilities if you have elders, and easy access to work if you’re a professional.

If it’s for investment, check how the real estate market looks for the next 5 years in the area you’re interested in. Decide if you want to invest in a house or in a commercial property, which could also be a good choice.

2. Find The Best Home Loan Rates

To help the economy recover from the pandemic’s impact, the government has taken steps to boost spending and investments. One of these measures is reducing interest rates for home loans.

Comparing the interest rates from the previous year to those offered last year, there has been a drop of more than 2%. While this might not sound like a lot, it can make a big difference when you’re borrowing a significant amount from the bank. However, it’s essential not to choose a lender solely based on the lowest rates. It’s crucial to understand whether the interest is fixed or floating. Otherwise, you might end up paying more than you initially expected.

3.Take Preparation for EMIs

Before you borrow money from the bank and start paying monthly installments (EMI), it’s smart to set aside some cash equal to the EMI amount. Doing this before getting the loan helps you get used to having less spending money. 

So, when you actually start paying the EMI, it won’t feel like a big change. You can save this EMI amount for a few months, not just to get used to having less money, but also to save up for the down payment.

4.Save Money for Downpayment

Many people believe that buying a home is easy because you can get a loan. The good news is that home loan interest rates are very low right now. However, there’s a catch: you still need to pay 20% of the house’s price upfront as a down payment, or else you won’t be able to get a loan!

The Reserve Bank of India (RBI) has made a rule that banks and other lenders can only give you 80% of the property’s value as a loan. This means you must have at least 20% of the house’s price saved up for the down payment. 

For example, if you want to buy a house worth one crore rupees, you need to have at least Rs.20,00,000.00 saved up for the down payment. And remember, there are extra costs like registration fees, loan application fees, and money needed for furniture and interior designing. 

So, in reality, you might need close to Rs.40 lakhs saved before you can buy a one crore rupee house.

The good part is, the more you save for your down payment, the less money you’ll need to borrow from the bank. This means you’ll have lower monthly payments.

5.Start Looking for Homes

When you have your money and needs ready, you can start searching for homes. It’s not easy finding one because you might either be too picky or too relaxed about what you want. It’s a good idea to list the things you really need in a home and the ones you can live without.

However, you need to be patient and open-minded when looking for a home. Contact with reputed real estate developers to keep your options open but make sure the home you choose feels like home. It should be a place where you’re happy and can imagine living for a few years at least

Final Words

When you’re thinking about buying a house, remember it’s not just about the money. There are other things you need to think about too.

If you’re still looking for a house, contact Srijan Realty. We are reputed real estate developers in Kolkata. We develop luxury residential properties to commercial properties in the heart of Kolkata. 

You can also talk to our experts for help with loans and other things. Click here to get your dream home without stress.