How Much Money You Need to Buy a House

Flats and Keys
24 Aug 202408:10

Summary

TLDRIn this informative video, Rohan Bhardwaj discusses the financial considerations for buying a home in India. He explains the importance of having sufficient savings and eligibility for a home loan, as well as the additional costs involved in property purchase such as stamp duty and registration fees. Rohan also highlights the ideal scenario of allocating only 30% of one's income for home loan EMIs, ensuring a balance between housing expenses and other financial needs. He further explores the benefits of under-construction properties, comparing them with ready-to-move-in options, and advises on the best approach to budgeting for a home based on cash in hand, loan eligibility, and EMI affordability.

Takeaways

  • 🏡 Buying a home in India requires careful financial planning and understanding of the costs involved.
  • 💰 The amount of money needed for buying a home depends on the property's value and the buyer's eligibility for a loan.
  • 🏩 Banks typically provide a home loan up to 80% of the property's value, with the remaining 20% being the buyer's contribution.
  • 📋 Additional costs such as stamp duty, registration fees, transfer charges, and broker commissions can add up to nearly 10% of the property value.
  • 💡 It's advisable to have at least 6 months of expenses saved up for emergencies and to cover monthly investments.
  • 📈 The home loan's EMI should ideally not exceed 40% of the net family income, considering all current EMIs including car loans, phone loans, credit cards, etc.
  • 🔱 The maximum home loan amount one can afford depends on the cash in hand, loan eligibility, and the capacity to pay the monthly EMI.
  • 🏗 For under-construction properties, an upfront payment of 10-15% is required, with the balance paid to the builder by the home loan company and the final 5-10% by the buyer at possession.
  • 🌟 Under-construction properties can be a good option if one can save and invest the remaining amount for 5-7 years before possession.
  • 📊 The final budget for a property will depend on the combination of cash in hand, loan eligibility, and the capacity to afford the monthly EMI for all loans.
  • đŸš« The logic explained in the script may not apply to Maharashtra, where under-construction properties require a minimum of 15-20% upfront payment for stamp duty and registration.

Q & A

  • What is the main topic of Rohan Bhardwaj's video?

    -The main topic of the video is discussing the financial considerations and steps involved in buying a ready-to-move-in or under-construction property in India.

  • What is the purpose of Rohan Bhardwaj's new channel?

    -The purpose of the new channel is to share powerful life skills that can help viewers achieve success in various aspects of life, including career and business.

  • According to the video, what percentage of the property value should one expect to contribute themselves when buying a home?

    -One should expect to contribute around 20% of the property value themselves, as banks typically provide a loan up to 80% of the property value.

  • What additional costs are associated with buying a property that are not included in the property value?

    -Additional costs include stamp duty, registration fees, transfer charges, broker commissions, and other miscellaneous expenses, which can total up to approximately 10% of the property value.

  • What is the recommended financial backup one should have before buying a property?

    -It is recommended to have a financial backup that covers at least 6 months of expenses and an emergency fund, as well as a backup for monthly investments.

  • How does the home loan EMI affect the budget for buying a property?

    -The home loan EMI should not exceed 40% of the net family income, which includes the combined income of all family members involved in buying the property.

  • What is the maximum loan amount one can get based on their monthly net income?

    -Banks typically offer a home loan amount up to 60 times the monthly net income, depending on eligibility.

  • What is the significance of having a clear budget when considering buying a property?

    -Having a clear budget helps determine the cash in hand, home loan eligibility, and the monthly EMI one can afford, which in turn helps in identifying suitable properties within the budget.

  • What is the difference in upfront payment between a ready-to-move-in property and an under-construction property?

    -For a ready-to-move-in property, an upfront payment of about 30% is required, whereas for an under-construction property, it's typically between 10% to 15%.

  • Why is it important to maintain a certain level of savings after buying a property?

    -Maintaining savings is important to cover ongoing expenses related to the property, such as maintenance, taxes, and potential future investments or emergencies.

  • What is the advice given for those who cannot find a ready-to-move-in property within their budget?

    -If a suitable ready-to-move-in property is not found within the budget, one can consider increasing the budget by moving towards under-construction properties.

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Étiquettes Connexes
Home BuyingLoan EligibilitySavings StrategiesReal EstateFinancial PlanningEMI CalculationInvestment TipsProperty BudgetReady-to-MoveUnder Construction
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