What are your expectations before buying an apartment/flat

by chartered housing Luxury Apartments

Buying a house or is a major life goal for many. People start saving up to buy a new house for years and continue to repay home loans even years after they have acquired their dream home. Home buying is a costly affair and one must take due considerations before taking on such a huge financial burden. In most cases, buyers will have to liquidate their assets and some of their savings to fulfill their desire of owning a home. Considering the magnitude of challenges that one will have to face, and it being a huge decision here are a few things one must consider before buying an apartment in Bangalore.

 Home EMI

The home loan EMIs can be one of the major financial burdens every month. With proper planning, one can stay afloat without having to plunge into the deep end of debt. The rational way to do so is to ensure that the EMIs don’t exceed 40% of the net income of the household. This will allow for some spare savings for emergencies. If the EMIs exceed beyond 50% of the net income, then it will turn out to be an extremely tough time for the family for the entire tenure of the loan.

Additional Costs

The ancillary costs of a house are generally not advertised, and often kept from the buyer till the time the cheques are signed. These costs come in the form of facilities charges, gym membership fee, additional surcharges etc. and are often hidden in the fine print.

Legal costs, stamp duty, and registration charges are also ought to be taken into consideration, which can run well into 8% of the overall price. Plus, house warming celebrations are quite a big bash in India. Hence, these costs should also be factored in.

Dry Run for A While

Getting the jitters when making such a huge financial commitment is quite common. To address any doubts of where one can take on the challenges of such a financial burden it is recommended to take a dry run with the finances. Let’s say the loan amount sanctioned in 50 lakhs, at 10% interest for 20 years. The EMI will then come to about 48,000. Strictly putting away that much money every month in a short-term RD for about a year will help assess how tough it will be. This will also help prioritize other financial commitments and weed out unnecessary costs for about a year. At the end of the year, one will have about 6 lakhs of money in hand, which results in a higher down payment and a shorter loan repayment term.

Be it a luxury apartment in Bangalore or a budget apartment, the risks involved are quite the same. However, going forth with quite the caution while buying an apartment will ensure that one gets a good deal in the present and the future.

Chartered Housing is a premier Real Estate entity in Bangalore, and we deal in a variety of apartments and villas in the city. To know more about our services and projects, do visit our website at

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About chartered housing Freshman   Luxury Apartments

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Joined APSense since, August 17th, 2015, From Bangalore, India.

Created on Jan 21st 2019 03:17. Viewed 182 times.


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