Whether you are a renter or someone with a smaller starter home, there is no denying that owning your dream home has become increasingly difficult. Despite this, many young people consider owning their own homes as one of their most important life goals.
Here are a few tips on how you can find your dream home.
- Have a solid plan – Before even starting the house-hunting process, know what you are looking for. Make sure you have paid off all your previous debts and build up an emergency fund that can last for at least 3-6 months. Analyse your assets and income and set a budget. Decide how you are going to finance your dream home and have the amount needed for the down payment (usually between 10% to 25% of the house’s value) ready.
You must practise strict financial discipline during this time. Cut out unnecessary expenses and invest your savings in profit-making instruments.
- Start early – Saving for and investing in your dream home is undoubtedly a long process. Therefore, the earlier your start the easier it will be to own your dream home. Starting early not only gives you more time to build up your savings but also reduces the amount you have to set aside per month.
Moreover, at a younger age, you can work more or have more than one stream of income. The burden of providing for family and other needs is almost non-existent. Thus, you can save and invest more.
- Research your dream home (and be picky) – Before looking for your dream home, decide where you want it to be, and how big you need it to be, and consider whether the house will increase in value over time. Make sure the locality is one where you want to live.
When looking for a home, do not settle for something “good enough”. Your dream home should match your needs and aspirations. Be patient and choose wisely.
- Compare home loans – Once you know what house you want, take time to compare all your loan options. Take into account the interest rates, processing fees, late payment fees, pre-closure charges, etc.
Follow the general wisdom that your EMI payment should not be more than 25% of your take-home salary. Comparing home loans will help you find the plan which would be the cheapest for you over time.
- Set aside funds for the future – Finally, before you go all in, make sure you have enough funds set aside for EMI payments, any emergencies that may arise, any change in lifestyle, etc. Buying your home is going to be a long-term process so make sure you are financially secure before you commit.
Joyville Homes by Shapoorji Pallonji has assisted a new generation in discovering their dream homes. Currently, numerous residential projects are underway in major cities across India. To learn more about these projects, visit – https://www.joyvillehomes.com/
