A lot of people dream about owning a house. But due to the increasing property rates in the country, it has become very difficult for people to buy a house in a single payment. The government is coming up with schemes that can help you buy a house. In some cases where the price of the flat is very high, the government schemes can lower the loan amount but not enough for it to be affordable by the applicant. However it is not impossible to buy a house, you just have to work in the right direction to buy a house. You can do market research or avail financial aid provided by the bank when you apply for a Home Loan.
Here are a few things you might need to consider before you buy a house:
The amount you need to buy a house:
To buy a house you need to decide the property that you are going to buy and how much money will be needed. If you are falling short on finance you can apply for a Home Loan from the banks. The banks may charge you a certain interest rate on Home Loans. You can do a survey of the banks, as the interest rates vary from banks to banks. You can also apply for Home Loan insurance so that if there is any mishap the insurance company will settle the balance loan amount with bank or lender.
You have to search for a house within your budget:
If your budget is low, you can even choose a house with low market value. The market value of a house is decided on the basis of its age, quality of construction, location and if there are any repairs needed. It is not hard to find a house below market rate. If you need to buy a house without spending much money, these types of houses can be the ones you can eye for. And if the house needs to be repaired you can ask the seller to decrease the price.
As these houses are below market value there might be some problems that you might face for some time. The banks may not approve the Home Loan due to the low market value. You can find money lenders who will approve the loan at a higher interest rate.
Find ways to save on taxes:
The taxes which are levied on Home Loans have a big amount of money involved in it, and these taxes can be avoided when you buy the house by using a Home Loan. You can save on the taxes by mentioning the repair charges while filing the application for the loan. When you apply for owner occupant Home Loan, you can save on the taxes incurred on capital gains when you sell the house. However, you cannot sell the house within 5 years of purchase. You can consult an accountant for a better guide to save on taxes.
It might take a lifetime for a person to buy a house with his savings. Savings can be used to buy a house but it might not be enough to pay for a house. With the help of a loan, you will be able to buy a house sooner and it can save you on the other charges like rent and relocation charges.
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