3 Golden Investment Tips To Help You Buy A House

By Adhil Shetty | September 11, 2017

3 Golden Investment Tips To Help You Buy A House

Purchasing a home counts as one of life’s most important financial decisions. Therefore it demands careful long-term planning. Saving and accumulating funds for the down payment and then some before taking a Home Loan is not an easy task. However, you can keep these pointers in mind to plan the task with some focus.

Conduct Adequate Research

It is important to decide your overall budget and the consequent amount of housing loan you need. Most banks sanction up to 70-90% of the property value for a loan but you need to do the math to see if the resulting EMI and tenure of repayment fits well with your financial plan. Ideally, try to maximize the amount you pay as down payment as paying more up front would mean easier and lighter loan repayments.

Build A Corpus

Property prices are soaring in most cities. Hence, it is recommended that you start building a corpus early so that you accumulate a sizeable amount over a period of time. Give weight to high growth options such as equity. Keep the investment goal of saving for a house separate from your other financial goals such as retirement planning. Channel a certain sum regularly towards the down payment kitty and you’ll be able to save a reasonably hefty sum over time.

Consolidate Your Finances

A few months before you make your actual down-payment, you can shift your funds from equity to safer debt instruments. Depending on the time period you have in hand, you can choose between ultra-short term and short-term bond fund. Once you’re all set, keep a part of your corpus for other related expenses such as registration cost and furnishing.

Above all, don’t empty your bank accounts to buy a house. Always ensure adequate liquidity to help cover for any unexpected financial event that may come your way.

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About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of BankBazaar.com. Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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