How to Buy a House on a Budget!
Wondering how to buy a house on a budget? You have reached the right spot. Buying a home is a dream that most of us harbor. One of those dreams that we strive to fulfill right from when we are young. Each of us has a certain notion of how we want our dream home to be. However, reality can be much different, and more often than not, buying a home on a budget can be a challenging task. Here are a few simple guidelines on how to buy a house on a budget that will make the task less taxing for you. These will give you an overview of how you can segregate your savings, investments and pick the right home for you and your family.
1. Practice saving religiously:
Buying a home can be a heavy investment, and irrespective of the age group you come under, it is imperative to have substantial savings before investing in a home. If you are in your 20s and have just started earning, practice saving each month so as to ensure that you have enough to make a down payment (a full payment is even better). If you are in your 40s or 50s, ensure to save enough after deducting all the expenditure of yourself and that of your family. Savings make the biggest part of your investment, and they will also come in handy post buying a home for any alterations, unforeseen expenses etc.
2. A dream home beyond your budget is not a good investment:
We all aspire to have the best, but often; we make the mistake of aiming too high and opting for a home that is way out of our budget. One might opt for a home loan, but buying a home that is far out of your means is an unsafe investment. The loan will eat into your life, become a burden both financially and mentally and maintaining a home that is out of bounds is no easy task. It may be a high end apartment or a massive Villa, if you are stretching yourself out of your means- maintaining it and living a peaceful life can be a task.
3. Plan your investments and expenditure carefully:
Buying a home may not be your only big investment, hence using up all your financial support for the same is no sound act. Whether it is the education of your children, getting married, travelling or the retirement of you or your parents- make sure that your funds are sorted accordingly. Landing in a financial fix after investing all your savings, taking up a heavy loan and paying off debts can put your life out of sync. Hence, it is extremely important to plan all your big and small investments, both long term and short term before zeroing in on a home that you wish to buy.
Chalk out your immediate and long term expenditure with utmost care. It is quite a pointless exercise to invest in a home without taking care of your basic needs first. Make sure that you are taking into account every small and big investment, ensuring that you are creating a balanced financial plan. After you have taken care of both your investments, and expenditure- you are now prepared to finalise a figure that will help you buy your dream home without any worries.
4. Research your options well:
From the location of the property, which determines the cost, amenities to the potential appreciation of the land, the growth of the area etc- one has to research the land he is buying thoroughly before investing. Sometimes, a property may come with legal issues which you may be unaware of, so make sure that you have a legal consultant clearing the property of any litigations for you. Legal issues that make the investment a burden and will eat into your investments and peace of minds for years together.
Carefully analyse the environment in which the site is located, the facilities around it, the tangent of its growth and how it will benefit you and family both immediately and in the long run. Buying a home in an area that is not equipped with basic facilities, basic access or potential growth will negate the value of your investment.
5. Secure your payment options:
You may be using a large part of your savings for buying your dream home and depending on a loan for the rest of the payment, or you may have saved enough to buy a home without a loan. In both cases, make secure payments that are recorded officially to prevent being a victim of fraud.
The market is abuzz with varied organizations offering loans. Investigate the authenticity of the same before finalizing the one you want to go with. The rate of interest, the finer details etc need to be thoroughly studied to ensure that you are not going to be paying a very heavy amount as interest, or being misguided with the finer print that you may have neglected.
These simple tips on how to buy a house on a budget will help you make the right investment at the right location and on a home that will be perfect for you, both in terms of its utility and as an asset. One has to keep in mind his aspirations, dreams and also his financial reach. Buying a home on a budget is not an impossible task. However, maintaining a healthy balance of reality and what is best for you is of essence here.
Disclaimer: The article contains data collected from various sources & the use of same is at readers discretion.