Home Loan for Different Properties based on Prices

Home Loan for Different Properties based on Prices

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    Purchasing your first home is one of the most exciting financial milestones of your life. Although it may seem like a complex process, it is an essential step when it comes to providing a stable environment for your family. Taking “the big step” of buying a home might make you feel anxious, but it’s your responsibility to take steps in the right direction. Before you begin looking for a new home, you first need to have a good sense of a realistic budget. In reality, many of us have a very few options, hence we resort to borrowing money from our friends and family to meet our goals. But it usually leads to a financial strain. Hence, availing a home loan will help you take a step further in fulfilling your dream. With Bajaj Finserv Home loan at Finserv Markets, you can steer away from the financial hurdles and focus on fulfilling your dream of buying a new home.

 

What can you afford in the top Indian cities?

The number of years you need to save for down payment in these cities

 

Cities

Number of Years

Bengaluru

5.6 years

Chennai

6.9 years

Delhi NCR

7 years

Hyderabad

3.6 years

Mumbai

12 years

Pune

6.2 years

Kolkata

5.2 years

Ahmedabad

3.9 years

 

 

Factors home buyers consider

 

 

Size of unit or living space

64%

Price of property

75.4%

Proximity to workplace or school

57%

Amenities like clubhouse and gym

44.3%

Scenic View

21.9%

 

 

The space you can buy in these cities with Rs 1 lakh

 

These are the calculated value for a ready to occupy 1,000 sq. ft. home.



Cities

Area

Bengaluru

16.1 sq. ft.

Chennai

12.1 sq. ft.

Delhi

11.9 sq. ft.

NCR

27.5 sq. ft.



Cities

Area

Mumbai

5.3 sq. ft.

Pune

14.2 sq. ft.

Kolkata

17.6 sq. ft.

Ahmedabad

25.4 sq. ft.

 

How much of total savings will buyer put in down payment?

 

Buyers

Total Savings

Over 80%

13.6%

50-80%

18%

30-50%

13.7%

Less than 30%

13.7%

 

How much EMI they are willing to pay?

 

Not planning to take a loan

6.1%

30 to 40% of household income

24.6%

40 to 50% of household income

18.6%

More than 50% of household income

9.6%

Up to 30% of household income

41.7%

 

 

Reasons for Buying a House

 

Want to save on rent

26.3%

Need bigger space

32.5%

Tax benefits on loan

9.6%

Being offered a good deal

7%

Price appreciation of property

24.6%

 

 

Obstacles that stop Buyers

 

Percentage

Reasons that stop buyers

41.1%

Property prices are too high

28.8%

They don’t have enough surplus

8.2%

Interest rates are too high

32.9%

Returns are unattractive

52.1%

Already have a house

23.3%

Living on rent is more cost-effective

5.6%

Other reasons

 



A more realistic approach

Buyers need to be more practical and consider a lot of other aspects when buying a new home. Some buyers tend to stretch their budget to be able to afford a home with the best environment and location. However, by giving in to their yearning for an uncluttered environment, they instead end up living in an area that lacks basic amenities. As a result, they end up facing problems like irregular water supply and electricity shortages. That should not be the case. In fact, when buying a home, one must consider several factors such as an easy commute to work and facilities like local schools, hospitals, and community entertainment. If you are buying a home for the first time you must consider getting a home in a convenient location that meets your basic requirements without blowing up all your savings.

You should definitely invest in a home that is affordable and meets your needs for at least a period of 5 to 6 years. However, you can get a new home when you can afford better with all the best facilities and amenities for you and your family. Till then it's best for you to keep utility and affordability as an important factor while buying your new home. It is also necessary that you have a clear idea of property prices and the rate of appreciation. Always keep in mind that a home loan EMI should not exceed 35-40% of your total income. Only a small percentage of homebuyers are willing to part with more than 50% of their household income towards home loan EMIs.

When buying a home you often think of getting a big house, but for that, you need to be financially secured. Bigger homes take away a big chunk of your household income and savings, forcing you to compromise on other aspects of your family’s life. An open space, posh housing society complete with all the luxurious amenities is what you want to be able to provide to your family. But you would definitely not want to spend all your money on a luxurious home, and compromise on your future security. You must assess your finances to know your loan eligibility and check whether you can afford the home loan interest rate. Do not forget to include transaction costs such as registration and stamp duty charges, brokerage, documentation, and processing fees in your assessment. Moreover, this information will later help you to plan ahead and make better decisions when taking out a home loan.

 

Conclusion

Buying a home involves a lot of complex steps and financial strain. But you can make your dreams come true by availing a loan with Bajaj Finserv home loan. With Finserv Markets, you can explore different types of housing loan solutions for construction, land/plot purchases. By doing your homework ahead of time, you’ll have more confidence in your decisions. Don’t be afraid to ask questions along the way and learn as much as you can before making decision. Whether it's your first, or one of many, getting a home loan to purchase a home is one of the most significant financial decisions you’ll make in your life.

You can also check your eligibility and EMI with the help of housing loan eligibility calculator and home loan emi calculator


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