Business News Desk, Buying a house is everyone’s dream, but buying a house is not an easy task. A middle class man spends all his savings in buying a house. Even after that, the money falls short and one has to take a home loan for it. In such a situation, a big question arises that when should a person buy a house? This is also a question that what kind of house should be bought, that is, how much should it cost? Let us understand through calculations when you should believe that you are ready to buy a house.
Make arrangements for down payment first
Whatever amount you are going to buy a house for, you should have about 30 percent cash for down payment. Out of this, you can pay 20 percent as down payment and with the remaining money, you will have to pay for the registration of the house, some minor expenses etc. The remaining 80 percent amount will be available to you through home loan.
Are you eligible to avail a home loan at a low interest rate?
After this, you have to check whether you are eligible to take a home loan at a cheap interest rate. When you take a home loan, your biggest aim should be to try to reduce the interest rate charged on the loan to the minimum. This will be possible only when you have a very good credit score. Let us tell you that for a good credit score, you should have a good credit history.
Buying a house means that you will not sell it in 2-4 or 10 years and buy another house. In such a situation, the decision to buy a house is a long-term decision. If you have made an EMI for 30 years, it means that you will spend half your life repaying the home loan. So before buying a house, see what responsibilities you have and what responsibilities you may have to fulfill in the coming years. According to that, you can decide whether you should buy a house or not.
Check EMI according to your salary
Although there is no rule as to how much EMI you should keep according to your salary, but if seen generally, then you should not keep the EMI of home loan more than 20-25 percent. Suppose your salary is 60 thousand rupees in hand, then your home loan EMI should be 12-15 thousand or maximum 20 thousand. This is because in the remaining 45 thousand rupees you will have to pay house maintenance, electricity and water bills, child’s school fees, cab charges, household ration, petrol expenses, clothes and eating out expenses will be included. Not only this, you will have to save money from the same salary for your old age and also keep money for the child’s education and marriage. Apart from all this, you will also have to keep some money as an emergency fund. In this way, while buying a house, first of all you have to see what is the price of the house. After that you have to check whether you have enough cash to make its down payment or not. After that, you will also have to see how much your EMI is and whether it is more than 20-25 percent of your salary or not. If you meet all these criteria, then you are ready to buy a house, but if there is even one of these criteria on which you are not meeting, then you should wait to buy a house.
