🤑 Can you afford it?
The total value of the home should ideally NOT exceed 3-5x your household annual income. You should have at least 20% of the home’s value available to be paid as the downpayment. You should keep the EMI’s less than 35-40% of your monthly income. Moreover, you HAVE to make sure you will be able to pay off not ONLY your EMI, but also your maintenance, property tax and any other payments that will come due once you go through with it.
📑 Have you done your due diligence?
Buying a property is a big task and you need to make sure all the legal documents are in place for the property to be transfered to your name. Verify all the property documents. Conduct a title search to ascertain the ownership and rights associated with the property. Crosscheck for any property disputes or litigations. Check for compliance with regulations. Ascertain the builders track record in the market.
🏡 Why are you buying the home?
Ask yourself why you are purchasing this home. Buying a home is usually an emotional decision for most Indians. And that’s perfectly okay, but it’s a HUGE commitment and you should be prepared to follow through. If you are going to live in the said home for the near future, be able to comfortably pay off your bills/EMIs without changing your lifestyle much, you should consider it. If you are constantly on the move, don’t know if you want to take on so much debt early on in life, you may want to put it on hold. If you are buying the property to rent/for investment purposes, consider the math behind it first.
There is a lot of speculation that in 2024, we may see the repo rates ease back down. This is expected because, inflation is expected to ease, India’s GDP growth seems buoyant and globally, interest rate easing cycle is expected to start soon. If we see a rate cut in the near future, and if you are looking to buy a home, this may be a good time to start thinking about it.
Send this to someone looking to buy a home in 2024... and we’ll see you in the next one ❤️
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