The home buying decision is one of the important decisions of life and for many, buying one is a milestone. Real estate investment is capital-intensive and it is all the more important that we make a thoughtful decision instead of taking an emotional plunge.
So before you decide to bet your money you must ask yourself if you need to buy a house. And if your answer is in the affirmative then you are good to go. The next step would be preparing a financial checklist before you buy a home.

Places like Pune have no dearth of housing options to choose from. But you must keep the following guidelines in mind before making any commitment. These parameters on the financial checklist will help you get ready to take the plunge.

Financial Planning before you buy a Home

Monthly Expenses

Before finalizing the budget for your abode, you must list out your household expenditure incurred every month, your scheduled EMIs. Keep aside that amount for at least 6 months for any unforeseen contingencies. If you are availing of the home loan facility then you must curtail your expenses by 25-40% to be able to pay the EMIs of your new house. A city like Pune has a high cost of living so you must be cautious before taking the plunge.

Loan Amount

Banks provide home loans for roughly 80% price of the property. The remaining 20% has to be borne by the buyer. So if you are cash-ready only then take the plunge. Also, you must keep in mind that there will be other expenses (running in a few lacs) like stamp duty and registration cost which account for 5-10%. It has been observed that if you pay 40% of the amount on your investment property from your savings then you would reduce your loan amount considerably.

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Suggested Read: 5 Reasons Why You Should Plan your Finances in Advance

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Provisioning Expenses

If you are a salaried employee you must take into account and provision for your recurring expenses for at least six months given the uncertainty of jobs. These expenses could include insurance premiums. This reserved amount may be utilized in case of any contingency. Besides, you must provision for at least 3 months of EMIs.

Clear Existing Liabilities

Before you buy a house on loan you should try and clear all existing loans or debts. These include any personal loan, loan on the car, etc. To keep your creditworthiness intact you must clear unsecured loans; you would improve your CIBIL score as any default on payment would be detrimental to your financial credibility. Apart from this, it would be tough to pay EMIs for more than one loan.

Miscellaneous Expenses for New Home

Property furnishing and interiors is a costly affair post home purchase whether it is 1 BHK in Pune or a 2 BHK home. People generally tend to ignore that initially and then later splurge on it. This spikes your budget estimates. You must provide for and fix a certain amount for this aspect so that you don’t overspend.

So if you are looking to buy 1 & 2 BHK Flats in Pune, there are projects from one developer that you must not miss to check out. Some of its ongoing projects include Gini Belvista Phase 2 (2 BHK, 2.5 BHK, and shops) in Dhanori, Gini Belvista (2 BHK, 2.5 BHK, and shops) in Dhanori and Gini Aria (1 and 2 BHK) in Yeolewadi. Gini group is a known name in Pune real estate scene. The Gini Group has a reputation for creating quality structures and delivering its projects in time.

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Also Read: Gini Belvista – 2 and 2.5 BHK homes in Dhanori

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Conclusion

Home buying is a crucial decision of life and you must critically examine the above financial checklist to assess your readiness for a home-buying. You have worked very hard to generate this money so use it judiciously.