If you do decide to buy one, make sure that the following factors are at
the top of your mind. Look at a house you can afford, evaluate how your
finances hold up after the new outflows in terms of EMI, maintenance
charges, etc. Stretching your finances is quite natural, especially since
owning a house is a matter of pride. It is however best to avoid over
stretching and err on the side of affordability.
Housing is an illiquid investment and it is a good practice to actually
write down the complete calculation on your cash flows with a few
scenarios like increase in interest rates (in case you plan to take a loan).
It is worthwhile to include the tax benefits that accrue if the house is
taken on loan.A home loan taken after some groundwork is always a
good vehicle to create a sound asset in the long term. While evaluating
a home loan, make sure you get the best deal. Check for interest rates
and other charges like processing fee and prepayment penalties.
The area and the type of house you want to buy is always a personal
decision but keep in mind the locality and the amenities that are around
or are slated to come up, this will decide the future appreciation in the
value of the property.
And finally, where it is your hard earned money at work it always pays
to be safe than be sorry. Make sure that all the legal formalities are clear.
Take services of professionals to make sure that your transaction is
safeguarded.
Now having bought that house, ensure that the house is insured. The
house should be covered for any damage in case of calamities and also
insured for the EMI payments. All these will ensure that your 'dream
house' remains so in your pursuit to fulfill your life goals.
At ICICIdirect, we offer home loans and can assist you in your journey
to making the purchase. We also offer financial planning services that
can help you plan better. Do walk into any of your Neighbourhood
Financial Superstore and talk to us.
Through our website http://www.icicidirect.com and this magazine we want
to make an earnest attempt to partner with you in setting and achieving
your financial goals.