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Buying your dream home is a huge investment, but one that is certainly worth striving for, and more and more young people are choosing to invest in the perfect property, before they settle down.
To help you purchase your dream home quicker, we’ve compiled some top tips to turn your desire into an exciting reality:
Set a Budget & Stick to It
This is a crucial step in any property buying scenario, as after all, if you don’t know what you can realistically afford, how can you even begin your search?
Think carefully about your income and monthly expenses, and try to be as realistic and honest as you can about what you spend, while taking into account unexpected outgoings, too, such as car or house repairs. Once you’ve come up with a realistic budget that accurately represents what you spend each month, along with what you predict you might spend at other times of the year, it’s important to stick to it as best you can. Don’t be tempted by loan discounts or exciting EMI options; you’ve got your budget, now stick to it!
Begin Researching Your Dream Home
Once your budget is finalized, you can move on to the most exciting phase: searching for your dream home! While this phase is certainly exciting, it’s by no mean easy, and you’ll either find yourself awash with properties, or struggling to find one that ticks all the right boxes.
Before you begin your search in earnest, think long and hard about what you want from your dream home, and what you’re prepared to compromise on. Some of your options will naturally be restricted by your budget, and it’s very important not to get too excited and decide to bid for a property that’s beyond what you can reasonably afford.
There’s value in saving – but investments could get you more
Savings are definitely valuable, but only when you invest your money in something, will you ever get the chance to make significantly more money than you would by saving alone. With a variety of risk-free investment options available, from fixed deposits and mutual funds, to recurring deposits and PPF accounts, you could increase your income, for very little effort.
To make the most out of your money so that you can afford not only to buy your dream home, but to live comfortably afterwards, too, try to invest your money smartly.
Apply for an Unsecured Personal Loan
If you’re looking forward to owning your dream house, then you might be aware of the term ‘unsecured personal loan’. This is arguably one of the best options for buying the ultimate property to match all your needs, and what’s even better, is that they’re readily available.
Also known as collateral-free loans, they have a quick approval process and can easily be credited to your account within as little as 24 hours. Easily repayable with a tenor ranging from 12 to 60 months – depending on your choice – and making it possible to borrow without offering collateral to the lender, an unsecured personal loan is an ideal option for many homebuyers.
Be Disciplined with your Finances
Being strict with your finances may not come as second nature to you, but it’s really important if you’re to achieve your vision of buying a dream home, and being able to afford it. Down payments and initial EMIs require you to be financially disciplined, and once you’ve mastered what some describe as a fine art, your dream home may be much more affordable than you think.
Before applying for a loan or taking any other step, make sure you have enough money to make your down payment from your existing funds.
To secure funds for the down payment, begin cost-cutting right away, and do whatever you can to avoid spending money on things you don’t really need, whether it be gym subscriptions, take-outs or branded groceries; you’ll be surprised just how much money you can save when you cut down on excess spending and buy only those things you really need. Once you’ve bought your dream home and your finances have settled down again, you can begin being a little less strict with your spending, should you so wish.
Set Money Aside For Future EMIs
Once you’ve applied for a loan, made the downpayment, and moved into your dream home, it’s time to stop and think about where the money for your first EMI is going to come from. While you might be able to pay it out of your monthly salary, if an unexpected expense crops up, you could be left high and dry.
To ensure that you’ll always be able to make your EMI’s, begin putting money aside into a separate fund that you don’t touch, to cover unexpected expenses and have enough left over for any EMI’s.
Clear Your Debts to Improve Your Credit Score
For the average homebuyer, monthly savings and small investments alone are not going to get you your dream property; you’ll need to apply for some kind of loan to help realize your dreams. With this in mind, you should try to clear any previous debts that are outstanding and improve your credit score, making you more eligible for hassle-free loans and lower interest rates.
Your credit score plays a critical role at the time of loan sanctioning, so lowering it is always going to be a smart move.
Be Smart & Always Compare Home Loans
With everyone out to make a profit, be it the borrower or the lender, you need to be smart and thoroughly review and compare your different loan options to ensure you’re getting the best deal.
While the path to owning your dream home at a young age isn’t always an easy one, it can be made a lot simpler with a little forward planning, a lot of dedication and a strong commitment to the dream!
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