Are you looking for a space of your own? Have you been planning to buy a house? And are you confused about where to start with so as to get a home for yourself? Then, you have landed up at the right place.
Buying yourself a home is one of the biggest decisions that you make in life. It is also a decision that involves a lot of money. Before you plan of buying a house you have to first plan how you would save a big enough amount that can help you buy a home. Even if you apply for a home loan, you would need some amount of saved money to start with or for the down payment of your home. Thankfully, you have mutual funds to your help.
An equity mutual fund can help you reach your financial goal faster by offering higher returns. In fact, if you start planning earlier, you can also think of buying a home worth Rs.1 crore in the next 5 years by accumulating enough money with SIPs (Systematic Investment Plans).
Buying a home may appear a very tedious, stressful and scary decision to make, it can be made simpler if you follow a step-by-step process to minimise risk. We are here to help everyone planning to buy themselves a house.
Decide Your Budget
Before running after a dream house or a fairy tale castle, it wold be wise if you sit calm and determine what you can actually afford. Buying a house is a big financial decision so fix a budget so that you do not take on a larger mortgage commitment than what you can actually afford.
It is advised that you should look for a home that is 2-3 times your annual income, not more than that. And do not ever use up your emergency funds to buy a home. You should always have some amount kept safe for urgent needs.
Making your money grow with mutual funds
When you are planning to buy a home for yourself ensure that your saved money is working hard to make itself grow so that you do not have to compromise on the house you want to purchase due to lack of funds. Mutual funds involving bonds or stocks or a combination of both can help you in planning your dream house. As they grow exponentially with the growth of the market, they intend to give you higher returns that make it easier for you to buy the house you would like to live in.
Home Loans that suit you
Once you finalise a budget for your home that you can easily meet without much hassles and stress. You should look for how much loan can you get from your bank. Bank might offer you greater loan than you have determined but don’t fall for that and stick to your budget.
You are going to invest a large sum of money when you buy yourself a home so research is very important. Start reading websites, newspapers and magazines with real estate listings and get some knowledge of how things are in the real estate market. Make a note of the homes that you think you’re interested in and enquire prices.
Decide on your Must-Haves and Nice-to-Haves
Finding the perfect home in your budget is almost impossible so it is better to have two lists in your hand before you go house hunting. What are the must haves you are looking for – how many bedrooms, bathrooms, area, the amount of outdoor space that is necessary to you.
And then you can also have a list of things that would be nice to have in the house you buy like furnishings, pool, decorative lighting, etc.
Start House Hunting
To get the real picture, you need to start with house hunting. Browse online resources or newspaper listings and start with visiting houses that you find suitable.
In sometime you can also decide if you’ll need a real estate agent to help you out or will you be able to finalise a place yourself.
Plan Your Offer
Once you find a property that you are very much interested in, it is time to come up with an offer you’ll put before the owner. You should not offer a price that is too low for the house you’re intending to buy. But then no one would like to pay more than what is necessary.
Review the contract before you sign the papers
Once a deal is finalised don’t be in a hurry to sign the papers. Make sure that you read each line of what the contract says very clearly before signing it.
Once all is set you can sign them and get yourself the home. It is important that you have the required amount of money by then so do not miss investing regularly in trusted SIPs, mutual funds to help your money grow faster.