Month: September 2022

Is owning an apartment in Newtown one of the top aspirations in your life? But an investment in a house is a big and long-term ticket with lots of costs involved.

So right in here, we present for you-

An Expert Guidance For Realizing Your First Home Budget

Tips put together from real-life situations only

#1 Realize Own Real Affordability

The foremost step to figuring out. It is not wise to spend more than 30% of your take-home salary on loans. You also need to see how much savings you have in the bank and if there is the possibility of more money/additional sources of income that you can add to your monthly income.

Do not buy a house that is beyond your budget, some people make the mistake of buying a house with the aim to sell it and clear the loan and enjoy profits. This is very risky decision as there is a chance that the market may crash.

You need to buy a home that you can afford today, and not in the future. Buying a house beyond your budget will also mean many months of struggling with finances until you are compelled to sell the house.

You will not have enough money to live each month comfortably, and in case there is an emergency you won’t have the resources you need to manage.

#2 Get Practical With Down Payment

A figure of anywhere between 15% -30% of the cost of the house needs to be paid as a down payment.

For example- If a home costs Rs 50 lakhs, the down payment will come to around Rs 7.5 – Rs 15 lakh.

No small amount by any standards. It is good to keep in mind that the bigger the amount of your loan, your down payment amount would proportionately raise. Think about how you plan to raise the amount needed for the down payment of the loan.

A savings of Rs 2 lakh per year invested at a rate of 10% for roughly 3.5 years would be needed to pay for a down payment of Rs 7.5 (approx.). 

#3 Focus On The Forecast

Before buying a house in 2022, you need to study the housing market predictions for 2020 and the housing market predictions for 2019. You can also look for real estate forecasts of the city and locality you are looking at.

A good real estate forecast can help you place a safe bet on localities that are always in demand, localities that have increasing demand due to infrastructure and other factors, and localities that are witnessing a sharp fall in demand.

You can even try to talk to veteran realtors & representatives of reputed building houses to find out their views and takes on the housing market outlook. 

#4 Get Set For The EMIs

Once you have crossed the hurdle of funding the down payment amount, you then face the big question of getting the loan approval and the further question of EMI payments. The maximum recommended percentage of your EMI to net income is 30%. However, certain lenders also extend this percentage to 40.

All said and done, 30 or 40%, it is you who is going to bear the burden of EMIs, so it is important to evaluate not only your current financial position but the entire tenure of your loan.

Think of all possible scenarios. Is your spouse likely to stop working in the future? Are you looking to quit your job and take the entrepreneurial track? Are you looking to acquire a higher educational qualification? Or a family emergency may come up.

Remember, the EMI cycle will continue to be payable despite any of the situations described here.

Feeling confident now? Then why wait to initiate own first home buying journey?

Drop a call to Team Realtech & gain just the Newtown apartment you wish for.

Waiting to cater the home of your desire.

Is it time to plan the buying of your own Flat in Kolkata? And for the first time?

A truly special chapter of life, without a doubt.

However, take a pause here. As a first-time home buyer, how savvy are you about the ‘rules of game’

in the real estate market? Aware of the exact steps to take & thereby perfect the buying & possession

process?

If not completely you say, then waste no more minutes & take a thorough look into-

5 Prime Errors First Home Buyers Tend To Commit

& thus gain the best deal on own dream home

# 1 Neglecting Home Loan Pre-Qualification

One core error to avoid as a ground rule. Learn that having a pre-approved home loan, in effect, makes you are credible in the eyes of the builder.

It comes as concrete proof of your paying capacity & also helps you as a buyer to assess your loan repayment potency.

Therefore, depending on your creditworthiness and savings, find out what kind of home loan you are eligible for.

This practice guarantees no unpleasant surprise or unpredicted T&C & automatically lets you estimate own apartment buying budget.

# 2 Budget Extension On Emotion

Top amongst the mistakes first time home buyers make. As highlighted by one reputed real estate executive, when hunting for their first home, people often get emotionally attached to a property.

Like they have seen the house of dreams, which the whole family loves as well; but it is way above their budget and loan eligibility.

So, the buyer feels that a little financial stretch in the initial months can be handled & steps ahead of their own buying potential.

However, the truth is, that it’ll drain you on various levels. You will find it hard to cover essential & emergency expenses of daily livelihood like unforeseen medical expenses, rising school fees, insurance premiums, etc. The financial strain will cause stress, disturbing your family life in the new home.

#3 Not Being Logical

Many buyers forget to weigh upon old age, disabilities, sickness & such other life factors when choosing their first home.

And in the long run, such buyers are often forced to sell their first property – especially in old age & hunt again, for a flat more suitable for that age. For example, the absence of an elevator in a building may not bother you, as long as you feel comfy to take the flight of stairs, as many times as required.

However, the same may not be true during your senior years or right now for your parents & other elderly family members.

To avoid this house buying mistake, the best practice is to sit down with all family members & make a list of priorities in terms of location, layout, and amenities before beginning the home search, so that you or anyone in the family don’t feel uncomfortable in the dream flat.

#4 Falling For ‘Zero Down Payment’

Yes, it appears as the readiest option to avail & own a house at an early stage in your career.

But look in depth before taking the leap. Be alert that low or no down payment eventually implies

A higher interest burden & extended repayment tenure – almost ‘trapping’ you in the loan cycle for life.

While the ideal 20% down payment can become impossible, try at the least to go for the average scale of 6%-10%.

#5 Lacking On The Legal Aspects

Another must-to-focus on point. If you want to buy a home, without any pitfall & keep it as a future

investment option, make sure to foolproof all the required legal terms associated with possessing the abode.

How to? Getting in touch with a reputed building house is the criterion that ranks top in here.

Since a well-known builder is sure to execute the sale & property transfer procedure, following every regulation.

In essence, owning a home is a lifetime matter. So be conscious & smart while undertaking the journey of buying it. Allow Team Realtech to help you.

With the goal to cater Home Sweet Home to everyone, we offer you the most dapper Flats in Kolkata to explore & choose from.

Ring us whenever it’s relevant.