But after fulfilling the dream, facing many financial problems, many people get confused as to why they built or bought a house. The main reason for this is managing money without proper forethought. If you’re planning to buy a home and are confused about how to manage your finances, check out investment influencer Akshat Srivastava’s tips.
Recently, he took to his social media to share some tips for homebuyers who want to do a real estate deal. While taking a home loan and paying EMIs for buying a house is common these days, the main thing to consider is to ensure that EMI schemes don’t affect your other expenses, he says.
Referring to his own experience, Srivastava said that he realized how to manage EMIs only when he bought 3 properties in 3 different states. His first and foremost tips is that the housing loan EMI should be less than or equal to the rent paid by one. But he points out that most people pay 2.5 times more in their loan EMIs than the rent they pay or have been paying.
Also Read : The 50-30-20 rule followed by rich people.. If you do this you will be rich too.!
He says that it is rare to find people who pay less EMI than rent. Citing his own experience, Srivastava said that he realized how to manage EMIs only when he bought 3 properties in 3 different states. His first and foremost tips is that the housing loan EMI should be slightly less than or equal to the rent paid by one.
But he points out that most people end up paying 2.5 times more in their loan EMI than the rent they have been paying or getting. He says that it is rare to find people who pay less EMI than the rent they will pay or receive.
Also Read : New home prices keep rising – what should consumers do?
For example, let’s assume that a person pays an EMI of Rs.80,000 per month on a property purchased for Rs.1 crore. But if before this he was paying a maximum rent of Rs.25,000-Rs.30,000 or he can rent the property for less than Rs.80,000, he may not be able to cope with the financial burden at some point, he says. The second tip is that it is unnecessary to have a purchase property worth more than 3 times the family income. For example, if your total family income is Rs 20 lakh per year, the value of the property to be purchased should not exceed Rs 60 lakh.
Thirdly Srivastava is asking if you have the deposit to pay 40% down payment. If not, he advises to put off the idea of buying a particular property. If someone can’t pay 40% of the total amount upfront, he says, don’t buy it.
From global to local news (Top Tamil News, Breaking News), Latest Tamil News, all can be found instantly on News18 Tamil (News18Tamil.com) website.
News18 Tamil Nadu TV can be found on ARASU CABLE – 50, TCCL – 57, SCV – 28, VK Digital – 30, SUN DIRECT DTH: 71, TATA PLAY: 1562, D2H: 2977, AIRTEL: 782, DISH TV: 2977.