Things To Know Before Buying A House Projects in Panvel

Posted by Balaji Symphony on October 4th, 2019

Thinking of buying a second house Projects in Panvel, but worried about the down payment? Losing sleep over the additional loan, and trying to evaluate the soundness of the investment? Even a ‘small’ investment in real estate can often mean lakhs of rupees, and the added financial pressure of buying a second home can often be overwhelming. We have got some great tips to get you through this. Buying your second house may be easier than you think!

Budget:

How to save for your dream vacation and holiday home! Now that you have decided on what you need, begin the penny pinching. Monthly budgeting is the best way to begin. Start with a simple excel sheet to track all your expenses – Transport, Rent, Food, Treats and so on. Assign an overall percentage to each of these items to see where you are spending more or less, what is required and what is not. Target the top 3-4 most expensive items on your list and focus on how you can save here.. It can be easy to lose track of your spending, so rather than waiting until the end of the month, start right at the beginning. Buy your dream house 2 BHK Flats for sale in Navi Mumbai.

Decide what kind of second house you need to buy:

Do you want your new Property in Panvel to be an investment or a house away from home? The location of this second house will also affect the price tag, so choose wisely! A holiday house would be great if it is a quiet farmhouse on the outskirts of your city.

Minimize on the Luxuries:

This is an important step that will probably take you further on your path to a second house loan than you might think. All those little luxuries add up, and if you were to control them, you’d realize how much quicker you could hit your savings goal. Find a balance between cutting them out completely and overspending – make a fancy meal at the house rather than eating out at an expensive restaurant every week. Instead of burning money on fuel, carpool with colleagues. Make a list of your monthly expenditure and look for expenses that can be minimized.

Treat Yourself:

Keeping the purse strings too tightly closed can backfire – you snap and make expensive, impulsive purchases. Rather than driving yourself crazy by denying yourself, your every luxury, make a plan to treat yourself every few months. Set yourself a savings goal every quarter, and once this is met, treat yourself to a day at the spa or that nice mini-vacation you’ve always wanted. This reward program will make those months of saving for a holiday house easier as the months go by.

Get the Taxman to pay for your Second Home:

Apart from borrowing, saving can be a form of alternative finance as well. A tax benefit on a second house loan is given on the interest part of the amount that you pay for a fully constructed house; or 20% of the total interest paid before construction began is also allowed as a tax deduction while construction is not yet complete. Since the law considers your second house to be rented out and therefore eligible for income tax, these need to be factored into your budgets.

Increase your Down-Payment if Possible:

Next, when you think you are ready to make the big leap and buy that second Luxury Property in Navi Mumbai, it may be a good idea for you to pay a larger down payment on your second property than the standard. If you pay a larger sum upfront, say 30-35%, you will reduce the housing loan you will want to take out, thus saving yourself thousands of rupees in interest. This would allow you to finish paying off your loan faster and reduce the stress that comes with a large loan.

Saving for your new property doesn’t have to be about deprivation and anxiety, all it takes is some careful planning. A little forethought before you begin this journey will reduce all your tension and worry over loan repayments in the long run; and every time you check your house fund and see those numbers growing, it will motivate you to keep going!