These days the millennials prefer investing in their dream homes. To save money they prefer to rent out their property. To buy a property, the first and the foremost thing that you need to plan is a monthly budget well enough to save money for the down payment that you will have to pay from your pocket. Apart from this, you can avail a home loan from a bank. Buying a home is a dream and therefore, it is important that you follow some important tips, when buying your dream house.
Tips to Buy your Dream Home
Given below are a few tips that you should follow when buying your dream home:
1. Have to be Financially Dependent
If you want to purchase your dream home, it is important to be financially disciplined. You will have to first make the down payment which will be anywhere between 10 and 25% of the market value of the property. It is important that you start accumulating money for the down payment and for that you should start cost cutting, avoid all kinds of wasteful spending and also try expanding your investment pool. It is also important for you to clear your debts to avoid extra burden.
2. Stick to your Budget
Another very important thing to do is to categorize your expenses. You should determine how you will spend the money. You should then plan your budget. You will therefore be able to compare your income with your expenses and then track how to spend your money.
3. Do a proper market research
It is very important for you to check out the prevailing market rate of the property of the area where you are planning to buy. Set a budget and start looking for those kind of flats. If you do not need a very spacious home, you can opt for a 1 or 2 BHK apartment. The flats in the outskirts cost way less than in the city. Knowing all of these details will help you understand exactly how much you will need to save.
4. Plan your Investment
When you are buying a house, just saving will not help. You will also have to invest in the right way, so that you are able to get a higher return. You should therefore consider all the risk factors associated with the different investments and take a wise investment decision.
Renting VS Buying- Which is a better option?
As we all know that buying a home is a huge decision. Therefore, whether you should buy or rent is also a major decision that affects the financial health, personal goals and lifestyles. Which option you will choose will depend on your lifestyle and your financial situation. Both renting as well as buying requires you to have a regular income so that you can afford to make the payments and the associated costs.
There are however several differences that make renting a property quite different from buying a property. When you rent a property, you might not have to bear certain responsibilities that might be associated with owning a property. Renting also offers you more flexibility as you are not entirely tied down to your property. When you buy a home that requires you to invest a certain amount of money. It comes at a big cost both upfront and also in the long run. Owning a home might not always be better than renting and renting is not as simple as it might initially seem.
Buying a house certainly sounds like a dream. It is a place where you will make memories, might be raise a family or simply enjoy the pride of being an owner. There is much more than hefty price tags and responsibilities. It is also about emotions, dreams and ambitions attached to your decision of buying a home. Renting on the other hand, might seem to be an easier option. There will be more flexibility and less commitment. But if you do not have a secured home for yourself, you will always be reminded about paying your rent and you will not get to live in your own space. This dilemma is real if you trying to build a future.
Conclusion
Buying a home at an early age can be quite a challenging task. It is however not an impossible task. If you are planning to buy a home, delaying it for the future will make it all the more difficult. Though your income might increase in the future, so will your financial commitment. If you however, plan well and follow the above mentioned tips, you will soon get the keys to your dream home.