It’s a fact that everyone wants to have own house. But moving from rented accommodation to having one’s own house is always faced with typical challenges. Starting from the choice of the house to affordability and price to understanding and overcoming legal challenges – all these require patient study so that a fair decision is taken.
Before making the firm decision to go in for own house, one should be financially disciplined and planned to take the all important decision of making the down-payment because that is what will decide on the type of house you can afford to buy.
For many people, it is an investment of a lifetime. So, it is pertinent to have a budget for the house and stick to it. Secondly, each location has its own price. A Home on the outskirts of a city or a small town may prove to be cost-effective. But, things like everyday commuting to work have to be kept in mind while taking a decision.
It is always better to go in for ready-to-move in homes as otherewise alongwith rent for the existing accommodation, pre-EMI is also to be paid by the home owner. It will be double payment, so it is better to look for ready-to-move-in property.
Most importantly, one should consider the best options in terms of home loans like rate of interest and re- payment period etc.
But, when compared to regular rental payments, modest mortgage would work out to be cheaper. As and when one takes a property on rent, the house owner may absorb costs of maintaining and improving the property and hence rental payments will always be expensive. It is observed that the interest rate on an investment property is generally higher than a traditional mortgage interest rate, so it is advised to take a low mortgage payment.
Lastly, one must take care of other expenses such as stamp duty / registration cost of the property, brokerage fees if any, home insurance so that all important points can be factored in before taking that important decision.