Sandip was a somewhat confused young man when he planned to buy his first home. To make matters worse, he became more confused after he visited a few under-construction and ready apartments and started planning for a home-buying budget.
Thinking that two heads are better than one, he consulted his wife Saheli and could finally see the light at the end of the tunnel.
Saheli insisted on consulting NK Realtors to solve their home-buying problems.
“Dipak and Rita had an amazing experience with them,” she informed Sandip.
Dipak and Rita are their family friends. They recently bought an apartment in Joka.
Let us discuss how you can plan for buying based on ongoing property prices in Kolkata as well as other factors.
Evaluate Your Financial Situation
Acquiring your initial home marks a momentous occasion and a substantial financial commitment.
Before you begin your home-buying journey, you must evaluate your financial situation.
Ensure you have enough savings for the down payment, which typically ranges between 10% and 20% of the property value. It is important to have a stable and reliable source of income to manage monthly EMIs and other expenses.
Consider Credit Score, Down Payment & Loan Eligibility
A good credit score, typically 750 or higher, is crucial for securing a home loan at favourable interest rates. A higher credit score can help you obtain a lower interest rate, reducing the overall cost of the loan and making monthly EMIs more affordable.
Most lenders require a down payment of 10%-20% of the property’s value. Start saving early to meet this requirement. Use online calculators to estimate the loan amount you can qualify for based on your income, existing debts, and credit score.
Your monthly EMI should not be more than 30%-40 % of your monthly income to maintain financial stability.
Consider the additional charges like processing fees, which can add to the overall cost of the loan.
Your loan tenure is also very crucial. If the loan tenure is too long, your interest outgo will increase, but if the tenure is too short your monthly EMIs will go up. Therefore, choose a tenure that balances EMI affordability and total interest payable based on your eligibility.
Assess Property Options
One of the major determinants of property cost is its construction status.
While ready-to-move properties are convenient as you can start living in them without delay, they are costlier than under-construction properties.
Under-construction properties also offer flexibility in payment schedules.
Moreover, standalone buildings are usually cheaper than residential complexes. They are also handed over rather fast but cannot match the quality of life in gated communities.
Location
However, budget is usually not the only consideration as there are other vital factors to consider. The location of the property is probably the most important consideration while buying a property.
The property must be close to schools, healthcare facilities, and other necessary infrastructure.
Commuting to and fro from the workplace should be convenient and comfortable.
Moreover, buy a property in a location where there is future growth potential. Areas with planned infrastructure developments and economic growth prospects can offer better appreciation in property value.
With all these in mind, how should you set out to fix your homebuying budget in Kolkata?
It must be noted that 2 BHK apartment areas are usually between 800-950 sq. ft. while 3 BHK flats are between 1000-1400 sq. ft. except in prime locations like Ballygunge, Park Street, or New Alipore.
Factor in Additional Costs
Property buying also comes with additional costs and recurring charges that you must consider. The home’s purchase price is just one part of the total costs. So, you must consider the following as well:
Registration Fees and Stamp Duty: These mandatory charges can significantly affect the total cost.
Legal Fees: Hire a lawyer to verify property documents and assist with legal formalities. Although it involves additional costs, it is a prudent step.
Maintenance and Utility Deposits: These upfront costs are required when moving into a new property.
Interior and Furnishing Costs: Budget for expenses related to furnishing and decorating your new home. NK Assist from the house of NK Realtors can help you with that.
Club Membership Fees: Gated communities usually have a residents’ club with various social and sports amenities. A joining fee is usually charged.
Emergency Expenses: Owning a home comes with unexpected expenses like repairs and maintenance. Building an emergency fund can help manage these costs without financial strain.
Buying your first home requires careful planning. By following these tips, you can manage the financial aspects effectively and make a sound investment. It will make your journey smooth and free from any monetary hardship.
