With more women in the workplace today, they account for over 20 percent of homebuyers as they take steps in the right direction to not only make a good, sound investment but also to provide a permanent roof over their own and their families’ heads. Further, it is also tempting to finally do away with the hassles of renting a property and paying rent month on month, instead of which an EMI can give you the security of owning your own home at the end of the loan tenure.
Let’s read on to know what you should take into account when investing in a house, and ensuring that it is by far the best decision you may have ever taken when it comes to investing your heard-earned money.
Make a list
The first thing to do is to list down what it is you’re looking for in a house. For instance –
- What are your lifestyle needs and choices?
- Do you really require a third bedroom or will two suffice?
- What other things do you need to consider, such as proximity to schools/ colleges/ hospital?
- What would be the approximate resale value, should you have to relocate?
- Are there any amenities that are absolutely non-negotiable, for example a gated community with a children’s play area?
These are just a few of the questions you need to ask yourself, before you narrow down on the options open to you.
Calculate your expenses
Unfortunately, the reality is that resources are ultimately limited, and hence while it is tempting to think big, it is prudent to aim for something that will not take up a large chunk of your monthly budget. Sit down, put together the amount of income you earn (either singly or jointly with a spouse) and the monthly commitments you already have. Based on this, determine the amount you can afford to spend on an EMI, without compromising much, if at all, on your current lifestyle. Remember your home owing process needs to be a joy and not a burden!
Know the other costs involved
Factor in other associated purchase costs such as property registration, stamp duty etc. Do keep in mind that you will also need to set aside funds towards maintenance charges, general repairs and renovation etc. There are also municipal taxes that are required to be paid annually, as well as contingencies that require urgent attention such as a leakage or plumbing that needs an overhaul. While owning a home seems easy, there are often unforeseen expenses involved too, so it is best to be buffered for those.
Consider availing of a loan
Most of us do require the assistance of a housing finance company or bank when it comes to making this all-important purchase. Hence, it becomes imperative to compare home loans before you decide which loan provider to go with. A loan is a practical solution for home buying as the amounts involved in property sale and purchase are high, and you may not be able to (or choose not to) spend out of pocket for the entire sum.
Do also check for preferential rates, as low as 9.5 percent that are extended to women by a large number of housing finance companies.
Borrow what you can repay
While a bank or housing finance company may offer you more than you really require to buy your house, depending upon your eligibility, do not be tempted to increase your EMI obligation simply because the money is available. Remember at the end of the month, it is you who are responsible to make good on the loan, hence think carefully before you seal the deal. Also, it would be advisable to plan ahead – keep in mind expenses related to education, marriage etc., all which tend to take up a fair amount of money.
Know your credit history
If you choose to avail of a home loan, the first thing a lender will verify is your CIBIL report. In addition to getting your finances in order therefore, knowing where you stand on the credit eligibility front is equally important. For your application to go through as well as to be offered a rate at the most competitive terms, remember that a good credit score will work in your favour. It is important to keep track of your score on a regular basis, and more so before you apply for a loan. Should managing your score seem difficult, you can always avail of professional help from a credit health management company to work towards improve credit score.
Buy your new home with confidence and join the increasing number of women investing in property. Look around and consider the type of home loan that best suits you, as well as the home loans rates.
This year then, make your dream home a reality!