FLAVOUR OF THE MONTHbuilder.
Total cost in hand: Estimate the
total cost to be incurred
including parking charges,
deposit for amenities, stamp
duty, registration charges,
interiors, new furnishing, etc.
These could shoot up your
budget and you may end up
br e a k i n g y o u r o t h e r
investments.
Recurring cost: Estimate the
recurring cost to be incurred
every month like EMI,
maintenance, property tax,
increase in commutation cost,
etc. to check if these fit in your
monthly budget.
- Does inflation impact the
pricing of a house?
It's a common understanding
that if the cost of essentialities
such as food grains, fuel, etc.
increase and the inflation
increases thereby, then the
value of all products increases.
This may necessarily not hold
true for property always.
When inflation rises, interest
rates also increase, which
means that the cost of
borrowing increases for the
buyers. Hence, the demand for
properties might decrease. To
keep up the demand level,
builders would bring down the
price of the properties to
ensure sales pick up again.
However, not all builders do
this, specifically large
de v e l o p e r s , w h o s e
investments in the land
required for building projects
in the larger cities are higher.- How much funds should be set
aside from your savings to
accomplish your property goal?
Generally, to buy a property, a
minimum of 20% of the
property value has to be set
aside for making down
payment. However, if you have
more savings in hand, you can
increase the down payment
and avail a home loan for the
remaining amount. - In whose name should I buy the
house property?
You can buy the property either
in your name only, or add
someone like spouse,
parent(s), children, siblings,
etc. as a joint owner and buy it
jointly. If you are buying the
property as a single owner,
there is no one to back you up