Owning a dream home like 3 bhk flats in Mohali has become one of the most common ambitions for today’s generation. With an elevated standard of living, career options, and easy availability of home loans, buying a home is the top most desire for the people. The price of the property varies due to factors like location, housing type, projects, amenities, and even the floor; however, calculating the affordability of the property in consideration takes a detailed analysis of the costs involved.
Let’s take a look at the affordability checklist that you need to ensure before making the final deal:
Once you have finalized the property, the next step is to decide on the loan amount. Bigger the amount of loan, higher would be the down payment and further EMIs.
Ensure that you have enough funds to make the sufficient amount of down payment to get the loan easily. Down payment ranges between 15 to 30 percent of the total cost of the property and hence requires systematic planning of your savings over the years. Take the help of various fund management apps available online for tracking your income and monthly expenses and how much do you need to save per month, quarter, or a year for the down payment.
Another aspect of home loan is the EMIs. The monthly installments are based on the percentage of down payment made and the tenure of the home loan. A stable income is a key to stable monthly payments.
Besides the primary cost of purchasing the property, there are a set of secondary costs to be considered while deciding on the affordability of the house.
Once you have purchased the house, the next big cost involved is the maintenance cost of the property. More the amenities are being offered in the project, the higher the maintenance cost of the property. If you are opting for luxurious apartment then the maintenance cost is likely to go up.
Once the property is bought, the next cost involved is the cost of the furnishing. The cost of interiors and furnishing can raise the overall property cost to 10-20 percent. However, the cost depends on the level of customization you want to go for.
Overhead home loan expenses-
Besides the loan amount, the additional costs like processing fee, legal and technical fee, stamp duties, registration cost, etc are the overhead charges we often tend to ignore.
Buying a house comes with lot of hidden costs that could increase your budget and make the property unaffordable. Consider all the costs involved carefully and consult the experts for the same.