Thinking of buying your first home? Must be an emotional high point in your life. However, before you commit to this responsibility of homeownership, stop and think.
Don’t make the mistake of
- Only relying on a loan for the house is going to cost you in terms of a high-interest cost. For a 90% loan – interest cost over 20 years can potentially be as much as the cost of your home. Ensure that you use at least 40%-50% of your own savings towards the house value and then take a loan for the rest
- Your housing loan EMI can last for a long time, make sure it does not become a burden if you want to change your job, professional status and work life. To do this, keep the EMI not more than 40%-50% of your post-tax monthly income – so that if there is a point where you want to take a break or change your job or even lose your job, the EMI doesn’t feel like a burden
- Think about aspects like location, commute time, quality of builder, neighbourhood, access to amenities – not just for now but also ten years later while making the choice of your home. You don’t want to spend the bulk of your time on the road trying to reach home – while simultaneously worrying about high pollution levels in your locality.
Build a life in your new home – not just a house.
Investing your money is a multiple-choice game today. You can pick across assets – right from bank deposits to commodities, art and wine. There is always one flavour of the season; in the pandemic, it was cryptocurrencies, then NFTs and most recently startups. Honestly, it’s an exhausting task to follow the trend. And what if you get the least profitable curve of this trend, you know, buy close to the peak and then lose your patience or attention, sell out close to the bottom only to chase the next fast-paced trend.
Recently, while attending an online financial coaches community meet, I came across this idea or concept around managing money and loved it. Many of us who are planners, take the planning to an extreme and stop enjoying the fruits of planning.
Starting your first An investment is made to give you a return. You make an investment if you use your money to buy either physical assets like property or financial assets like bonds and equity with an aim to receive income or gains... More no longer requires much thought or action. It’s literally a job done in 30 mins. Nevertheless, where you invest today makes a big impact on your future An investment is made to give you a return. You make an investment if you use your money to buy either physical assets like property or financial assets like bonds and equity with an aim to receive income or gains... More choices too.