What you are probably expecting in this blog is a list of (say) maximum four pointers on why you should be buying a house (and probably, you are probably someone who’s in his mid or late 20’s). The fact that you have clicked to read this blog proves that you have that certain level of desire to own your VERY OWN home. Yes, those two words are in caps because you are well aware of that feeling of finally standing amidst a piece of land or certain square meters of space that you have always wanted to CALL. YOUR. OWN!
But that feeling / the excitement / the rush – whatever you wanna call it – has been lived only within the four walls of your imagination only because of a constant juggle between your college loan and basic recreational engagements – all of it within an entry-level salary.
Roving within the fresh years of your employment, you probably haven’t been able to figure out a plan on how to control your spending spree and start thinking in the direction of making higher investments.
As “scary” as that might sound, planning to invest in your choice of property requires a certain level of soul searching and taking consultation.
“Soul Searching? Are you serious?”
No, no, no. We aren’t asking you to sit for an hour-long meditation to find your answers, but let’s face it! Any major decision in life, vis-à-vis planning for a postgraduate course, marriage, opening a new company etc, require you to be crystal clear about your decision.
That may mean asking yourself a thousand times why you want to buy a new house. If the decision is clear in your head, you are good-to-go to work on the next level, which is to know what is your budget.
Fixing On Your Budget
We completely understand how a shiny new hoarding, announcing the arrival of a sassy new property or on social media can ignite a certain level of desire within you that nudges you to research on the ready-to-move or new arrivals.
So, even if you’ve had “decided” to fix your budget at (say) Rs. 30 lakhs, a new advert on social media with lip-smacking views of a flat, poolside and greenery, worth Rs. 60-lakh property will seduce you to change your mind.
What may follow ahead are hefty loan EMI (equated monthly instalment) payments that turn out to be way above the monthly expense limit, which will eventually lead to stressful days & sleepless nights, till you’ve completed paying the entire loan and the interest amount. Stress, my dear friend, at no age is deemed glamorous! (chuckles)
So, it’s important that you sit composed, think realistically and fix the budget that seems doable for you and fix that figure (because you know that’s a healthy ballpark figure for you) have.
Look For The Right Bank
Now with the budget being fixed, we will move on to the next step – to research and finalize on the bank whose loan interest amount suits you best, depending on your financial stage.
But does it look tedious to you already? Like, searching the internet one-by-one and listing down at least top five banks whose schemes suit your needs? To make it a tad easier for you and accelerate your planning process, we have enlisted the top 10 banks with their interest rates. Take a look and start planning already!
Finally, Why Should You Be Investing in Real Estate
Other than it being your personal choice, there is a certain level of smartness involved in a real estate investment, and here’s why:
a) Manage Spending Habits
Experts believe that for millennials, investing in real estate equals investing in their financial future. They also believe that it pushes them to change their buying habit (and probably makes them more discipline) and shapes their decision-making process, as they will be more cautious and save/spend their hard-earned money more effectively.
b) Tax Benefits
Homebuyers are entitled to a series of tax credits; young buyers can use it to lower their tax liability.
c) An Early Retirement
Our dads had started investing when they were 45+. If you are planning to invest while you are 25+ then we reckon that you would be able to pay off your loan by 40 max. Think of all the things you can do once you are free to make further investments. A world tour, maybe?
d) Invest Further
Yes, you can invest more if you want to. If you’re ever on a dire need of money you can liquidate your current asset and use that money to take care of your business loans, etc.
If these reasons intrigue your appetite for a new home then you’ve probably started chalking out a financial map in your head already, and we congratulate you for that!
However, if you disagree over any point, we are all ears! Feel free to drop in an email at firstname.lastname@example.org.
A Simple Reminder
If you’re someone who likes to plan your life beforehand and watch it unfold one step at a time, you may have chalked out your plan already, fixed your budget and are probably in between the process to finalize the deal with your realtor and lender.
But if you’re someone who takes life one step at a time and prepares majorly for the upcoming goal, then this blog and the guidance that has been jotted should be of help to you.
Feel free to choose your own personal guide (someone who’s maybe your confidante, your parents, spouse, in-laws, bestie, realtor etc) to seek out extra help and figure out your investment plans step-by-step to avoid hassles, frustrations or any kind of chaos.