Tips For First-Time Home Buyers

Planning to buy a waterfront apartment in Kochi in 2019? Are you a first-time home buyer? Here are some dos and don’ts to help you make the whole process easier.

For most people, finance is the most important aspect they need to consider when buying a house. Often, the other considerations are dependent on this aspect. The purchase of a property is often once-in-a-lifetime decision and it is, therefore, important to evaluate your fund's position before going ahead with the purchase of the best waterfront apartment for sale in Kochi.

You have to utilize your savings as well as borrow from a bank or financial institution in order to buy a house. The borrowing process has become simpler, but there are some key principles that you need to follow when planning your finances. Read on to know more.

Pay off all debts you currently have

If you have multiple debts, assessing your net worth becomes difficult. Partial payments are not helpful because they impact your credit ratings. This can have an adverse effect on the home loan application process. So, it pays to clear off all your loans prior to applying for a home loan.

Invest in several assets

Learning about the various financial instruments that are available in the market helps you to invest wisely and make use of the returns for funding your home purchase. It is always better to invest in a variety of asset classes. This is because it will be helpful when buying big-ticket assets such as property. However, make sure that your investments are not skewed towards risky asset classes such as equities.

Track your expenditure

Real estate investment may be an expensive affair, but modern buyers want the best because of their global exposure. According to experts, your monthly budget should follow the thumb rule 50:30:20. You should restrict your expenses on basic necessities to 50 percent of your income. This includes groceries, medical expenses, and utilities, among others. You may spend 30 percent of your income on entertainment, but you should save the remaining 20 percent so that you can comfortably make the down payment.

Give standing instructions to your bank for transfer of money to the savings account

When you give a standing instruction to your bank, the money will be directly transferred from the salary account to the savings account on a monthly basis. This way you will spend only what is left. This also means that you are saving first and then spending. You can follow the same procedure when you take a loan for buying one of the lake view flats in Cochin. This takes care of the monthly EMIs right from the beginning and you avoid any kind of financial stress.

Maintain a balance between monthly EMIs and rent

You need to plan properly when you ahead with the purchase of a property because you have to manage rent and EMI payments for a period of time. Once you move into the new house, you should be in a position to increase the EMI amount.