Investing in real estate is something that everyone should do at least once in their life. Considering that buying a home is a lengthy process that involves paying off a heavy home loan and EMI for years, it’s better to start planning early.
Of course, planning in advance and managing your finances well make buying a home a much smoother and an easier process. These tips can help sweeten your home buying experience:
Investor Tips for home buyers
- Calculate your home loan interest rates with property appreciation rates. There is no point in paying an interest of 10% for a home that will appreciate in value by only 7% in coming years.
- Larger the down-payment smaller the EMI – that’s why it is better to start saving on the down payment early so that your EMI will be a smaller amount for a shorter period of years.
- Choose the home first then pick the loan. Getting sanctioned a loan is only for a fixed periods. If you haven’t found the home you want to buy in that time you will have to reapply for the loan and pay the processing fee.
- Investors say that you should not pay more that 40% of you basic salary as the EMI for your new home, so decide wisely!
- Homes with rental guarantees give you some respite from the EMI. Just rent the home and use the income to cover the monthly EMI.
- If you’re buying property for investment purpose keep your horizon of resale past 5 years as property rarely show much appreciation before this period.
- If you’re looking for property with high appreciation keep your ears open for news of new infrastructural development or the construction of new motorways. Residential development will soon follow such announcements and so will higher appreciation rates.
With these investor tips you can make a safe and educated decision while buying a new home. To know more about buying a new home keep visiting us and reading our latest stories…