Orchard 126 HIRA Registration No. - HIRA/P/NOR/2018/000236

Posted On May 10, 2018

Buying a Residential Flat within Budget


In the past few years, investments in real estate have escalated owing to higher economic growth, a quicker flow of finances combined with disposable income among the Indian buyers. Research shows that there have been highly active trends of buying residential flats among the investors. People are more fascinated by the concept of renting or purchasing residential apartments, rather than owning houses.


It is true that the socio-economic status, age, and profile of home buyers are changing fast, but it involves a lot of anxiety and hesitation when it comes to sealing a home buying deal. The primary underlying concern is always the budget, and with it comes other associated factors, such as the location of the new site, facilities available, neighbourhood, etc.


Why Budget Plays a Domineering Role when Buying a Residential Flat?


Budget when Buying a Residential Flat


Unless there is adequate financial planning, your decision to invest may go wrong, and you may land up in a budgetary disaster. The prime objective of a first-time homebuyer or an experienced buyer is always the budget.


Keeping the purchase within a decent limit is sound decision-making in chalking out the rest of one’s earnings into other investments of life. The question is how you can buy a residential flat within the budget, keeping other financial worries to rest?


Tips for buying a Residential Apartment within the Budget


Residential Apartment within the Budget


1. Review your financial earnings and obligations for each month and how much you can set aside for property investment. For instance, life insurance, students’ loans, and other financial commitments are part of life.


Therefore, when you are planning for property investment, consider the household budget and the amount of money you can afford for the EMI on the home loan.


2. There are many new housing projects in Kolkata, Delhi, Gurgaon, Mumbai, Chennai, and across India. Hence, when looking for an investment, homeowners should do an elaborate study on the city they want to choose and the area of the residential flat.


For instance, there are many affordable residential projects in Kolkata, Chennai, Delhi, etc., especially on the city fringes. Conduct a study of the real estate owner, the facilities available in proximity to your apartments and it’s affordability. It will help you keep the investment within a proper budget.


3. Research the various fixed rates of interest options. These days, realtors in Kolkata or Delhi, or in other parts of the country keep a tab on the concept of fixed-floating rates. Many home buyers prefer a fixed interest rate on a home loan, while others opt for floating rates that fluctuate as per the changing economic situation of the country. However, as per the current trend, home buyers are choosing fixed-floating home loans that refer to a fixed rate in the initial years and floating rates after a specified period. This serves as a good idea of keeping your investment in residential flats within the budget.


4. You should assess your present needs and your future goals, so as to plan your finances accordingly and keep property investment within the budget. Different people have different goals when investing in a property.


Some may be looking for a new home, some want to be a part of an upcoming popular realty property, some may want to stay near the workplace, while the rest may just be looking for an investment for capital appreciation in the long run. Your decision will determine the type of budget you need to plan. A strategic planning will definitely help you save money.


5. It is always said that a good investor is the one who has a higher rating CIBIL score. The CIBIL score is essential in the loan application process. The lender reviews the credit reports or credit score before he lends out a loan to the borrower.


If the score is poor, the lender may reject giving a loan. Therefore, if you want to enjoy a good loan and keep your investment within a decent budgetary limit, a good CIBIL score will help you earn it and even a viable interest rate, if you are lucky. It is because a good CIBIL report enables the borrower to avail an affordable interest rate.


6. Location plays a consequential role in determining the budget of a buyer. For example, if you are looking for a 2, 3 BHK apartment in Kolkata, then look for investments in the New Garia area. The locality is buzzing with life with all types of facilities available and is also quickly accessible from any part of the Kolkata city.


This, indeed, enables the investor to keep his financial planning safe and sound and at the same time enjoy the locality of the new property.


It deserves a special mention that the Oswal Group has many housing projects in Kolkata. Hence, anyone looking for an investment in the ‘City of Joy’ or in any other cities in the country should follow the above tips to keep the budget within one’s limit.


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