Purchasing a new property when you live on rent is possible when you plan and create a well-thought-out strategy. Keep in mind that your monthly outflow will double, as you will pay rent as well as make EMI payments. But don’t let this deter you. You can still buy property as long as you follow certain steps. Here are some ways you can purchase a new property while you rent.
Pick an affordable home loan
If you borrow an affordable home loan that features a nominal interest rate, you can easily manage paying rent and EMIs till you get possession of your home. Understandably, expensive home loans can make this difficult, as your outflow towards EMIs and rent will leave you with little money for other essential expenses. So, take your time to find a lender that fulfills this requirement.
Make purchasing a home easy while paying rent by going for an affordable Home Loan from Bajaj Finserv. Here you can gain from a nominal rate of interest, flexible tenor, and easy repayment terms.
Raise finance from your investments and liquidate assets
You might have various investments like fixed deposits, mutual funds, or shares. You can use the income from these investments to fund the purchase of a new home while living on rent. You could also raise finance from selling assets like a second car or unused items such as a home theatre system.
Additional Read: Should I take a loan against fixed deposit to buy a flat?
Opt for a lender who offers EMI holidays
EMI holidays are when a lender offers you a fixed number of months where you don’t have to pay EMIs. This break can provide you time to arrange for funds for repayment and is especially beneficial when you’re paying rent as well as cueing up to pay the home loan EMIs. So, you can use this head start to organise your funds better and cut down on expenses. To calculate EMI holidays, you can use a home loan 3 EMI holiday calculator.
Sublet a portion of your current house or put other property on rent
If you have an ancestral property in your name or property in another city, you can put it on rent to add to your income. You can also consider subletting a part of your current home. For example, you can open up a room or two in your home to a paying guest or offer it a stay option on vacation rental websites. This will allow you to earn additional income.
Additional Read: How to get your Home Loan quicker with Bajaj Finserv
When planning to purchase a new property while renting another, be mindful of how you can make your money go the extra mile. Following these tips will help you become a homeowner with relative ease.
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