For every average Indian, buying a home of his own is always considered as the symbol of acquiring success. “It is always considered better to pay an EMI to own a home, in spite of paying rent to make someone else rich” is well said common saying. When it comes to select weather go for rent or EMI, people generally get confused. Idea of buying your own home is close to everyone heart in order to have a comfortable lifestyle. It would be better to get an advisor having financial status to get help in order to make the right decision in this matter. The question of whether to buy or rent it totally depends on the financial status and your way to handle the same.
If you currently feel yourself caught in the dilemma of whether to go for EMI or RENT then here are some advices that will definitely help you to make correct decision. Our team of propertybala.com will assist you to take right decision in make your dream come true.
1. Estimating your financial position:
Very first factor is to analysis your financial status while selecting among rent or EMI. Let’s consider you have found your perfect dream house which is close to your workplace and your kid’s school with all possible amenities that are required for a good life. Then your work is to calculate approximate price with all additional costs. If your calculated sum is close to 75% of your proposed EMI then it would be a great idea to consider it for buying.
2. How much amount of payment you can afford:
Generally, you are eligible for a home loan if it covers up-to 80% of the total cost that means, you have to pay around about 20%-25% of total amount up front as your full contribution.
For example, If you take a loan of amount of Rs.48 Lakh for a home of cost Rs.60 lakh then this will lead you with EMI of Rs.50,000 approximately per month as per current rates of interest. In this case if EMI is more than 40% of monthly income you earn, then it is better to have a home.
3. Ask yourself whether you are ready to make available Pre-Payment:
Always keep in mind that regular EMI will provide you better discount option for you if you work for pre-payments in the few years of beginning it. If you chose reducing EMI scheme and even pay a small amount of Rs.10,000 then it will surely help you to make savings while buying your home and will help you make a correct decision to decide whether to go for rent or buy.
For any kind of suggestion or query related to property and investment you can contact us at propertybala.com, we are here to help you in this regard.