Buy a House within Your Budget – KW Srishti

Most critical decision is when you are planning to buy your first property. We right from the beginning are in some kind of illusion to own a luxurious plush house. But the dream remains dream for most as the investment required are phenomenal and may not fit the budget. Here I am referring to service class who has to plan each and every move logically and that calls for lot of intricate calculation. These days buying a first house is not so difficult if you be within your budget!

KW Srishti 

These days young couples need to do an early planning before it gets too late with more additional responsibilities like children up bring and high school fees etc. Ideally a house should be planned within 3 to 5 years of starting professional career in corporate jobs. If both couples are working then managing the budget becomes faster! I would advise young couple not to be under any illution, just get yourself ready to buy a house which fits your budget, location and size. You need to understand the utility of the flat you are going to acquire as your first investment. There are several questions that you should ask yourself:

1.       Your down payment to get bank loan
2.       If the flat size is good enough to serve your purpose / why do I need two extra bed rooms?
3.         How is the estimated rental income for the flat
4.       When will I get the possession of the flat / why should not go for a project which is still to come up.
5.       See the past record of the builder
6.       Interact with existing customers
7.       What is the Capital appreciation in nearby vicinities in last 5-years?

Experts believe in most cases buying a house one can afford at present can work out to be a better option. Later, the buyer can sell it to buy a bigger house or one at a preferred locality. A pragmatic decision should be taken for a house within your budget.

BYING MAKES MORE SENSE
Buying a smaller property now, sell it after 15 years and buy a larger property
	Amount (in Rs.)
Current Cost of a smaller property	50,00,000
Interest on housing loan @ 9%	33,02,719
Total cost	83,02,719
(A) Value of property after 15 years, assuming growth of market value at 5% per year	1,03,94,641
(B) Saving at the end of 15 years ( without giving effect to inflation )	1,19,24,483
Total Savings  (A + B)	2,,23,19,124
(C) Cost of larger property after 15 years	2,00,00,000
(D) Fund available for buying the property	2,23,19,124
Surplus Fund available after purchasing larger property	23,19,124

"Buying a home within your budget at a younger age frees you from a mounting debt pressure in your later years."