A house is more than just bricks and mortar or a place to live in; it is also where you and your family feel safe and comfortable. It’s a safety net for your dreams and aspirations, even when the times are tough. Having your own home not only means achieving a significant financial goal but also gives you a sense of fulfillment.
Though buying a house has become easier with the availability of home loans at a feasible rate, it can still be quite difficult to arrange the funds required to pay for the upfront cost of your house, which is also referred to as a house down payment.
Most lenders lend about 85 to 90 per cent of the total cost of a housing property as a home loan. The remaining amount has to be borne out of your pockets. Therefore, it is extremely important to save sufficient money for your house down payment and this process should ideally begin years before you plan to buy a house.
Here’s How You Can Save Money for Your House Down Payment
If you are planning to buy a flat in Mumbai, you need to shell out a substantial sum as the down payment of the house. Here are some simple tips that can help you save funds for the same:
Ascertain Your House Buying Plans At an Early Age
The adage “well begun is half done” holds true in the context of buying a new home. However, a good beginning in this regard would be an early start. The sooner you make your plans to attain a particular goal, the better placed you are to chart a road map that can be followed in a timely manner.
If you have not already started planning for your new home, don’t worry, today would be a good time to start! It is also important to factor in the potential inflation in real estate rates in your plan. This way, you can have a fair estimation of the funds you need to save for your house down payment.
Budget Your Incomes and Expenses
Planning a budget for your monthly incomes and expenses is the easiest way to ensure that you can adhere to a systematic plan vis-a-vis your finances. This easy yet highly effective activity can work wonders in enhancing your ability to save. Ideally, you should follow the 50-30-20 rule of budgeting, which states that you ought to allocate half of your income to necessary expenses, 30 per cent to non-essential expenses, and 20 per cent to savings.
Clearly your debts on time
Unpaid debts are one of the main reasons why you are unable to save or invest enough money. The down payment of your house should not be affected by pending debts payments and so, be sure to settle them when you start planning for the down payment of the house. Opt for savings and investment: To be able to clear the down payment for your new house, you need to be sure that the financial outflow does not clash with your other expenses. Since savings alone may not be enough for this purpose, look for viable and liquid investment options as per your risk appetite that can help you manage the house down payment.
Review your monthly expenditures
The down payment of a house is a major expense and it is not enough to merely plan your monthly expenses. While you should definitely plan ahead, review all expenditures, savings and investments on a monthly basis to ensure that you can save wisely for the down payment of your new home.
Stay updated on the latest investment trends
It is critical to keep yourself abreast of the latest trends in the market and the various investment avenues. Most of the investment options that you may have selected years ago could be redundant in today’s time. To ensure that you are able to grow and accumulate your funds for your new home, you will need to consider newer investment options from time to time.
Inculcate financial discipline in all facets of your life
Simply saving a part of your money and controlling your monthly expenses may not always be enough. You must endeavour to inculcate financial discipline in all you do, ranging from the purchase of household items to planning a vacation. Every seemingly small opportunity to save money can help you in your house buying plans.
To Sum It Up
Buying a house may be a difficult yet attainable life goal, provided you pursue it in a systematic manner. If you are looking to buy a flat in Mumbai, you can check out Piramal Realty’s luxury residential developments across the Mumbai Metropolitan Region, which feature excellent design and state-of-the-art amenities. You can book your dream home at Piramal Realty now.
This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.