Your home not only give you a space that you can call your own but also a sense of security. Planning a home purchase depends on various factors like your income, your future plans, the home loan you qualify for, and the real estate market. So, base your decision on practical factors and then see if it is more prudent to buy a home or rent one in the near future. Here’s how you can decide.
1. Your financial standing and the market conditions
Purchasing a home is a big decision that requires significant financial planning. First, you need to arrange funds to repay the home loan, pay the down payment, and finance-related expenses like stamp duty, registration, and your broker’s fee. However, when getting a home on rent, you have no such hassles apart from brokerage and the cost of creating a legal agreement, and of course, your rent. So, you can consider buying a home if you have the money necessary for purchase. Secondly, if the real estate prices are high, buying could be more expensive.
High real estate costs also affect associated expenses. So, study the market and buy a home only when you can afford it.
2. Your foreseeable duration of stay
There is no sense purchasing a home when you foresee living in it only for a year or two; in such a case, renting is better for you. So, before you decide, spend some time thinking about how long you are planning to stay in that particular city or location. Then, if your profession or family plans support your decision of living in the same place for the probable future, you can proceed with a home purchase.
Additional Read: Home Loan Tax Benefit
3. The nature of your occupation
Some professions require you to travel from city to city or country to country. If your occupation is such that it requires you to be on the go, rental accommodations would be more sensible. However, if your occupation is stable and doesn’t involve too much travel, you could think of buying a home.
4. Your need for freedom
There is much more freedom and choice available to you when purchasing a home of your own. For example, you can choose the kind of home you want, get the facilities you’d like close to you, and build or choose the kind of interiors and exteriors tailored for your family and yourself that cannot be accessible in a rented property. In the latter, you will often need to compromise on one aspect or another and have limited freedom to make your own choices. However, if you have certain lifestyle requirements that you don’t want to forego, buying is the best choice.
Additional Read: Check Your PMAY Eligibility Here
5. The type of home loan you qualify for
Much of this decision may also depend on the type of home loan you qualify for. You can easily find this out using a home loan eligibility calculator to see if you are eligible for a loan with your current income and the amount you are likely to get. Next, check if you can afford a home loan by evaluating the EMIs using a housing loan EMI calculator. Finally, be sure to check the other facilities or advantages offered by lenders to see if you can reduce your EMI obligation. For example, women applicants can get a lower home loan interest rate from most lenders today. You can also choose a Flexi Hybrid Home Loan from lenders such as Bajaj Finserv, which allows you to pay only interest as EMIs for the first few years of your tenor. Once your income increases with time, you can pay full EMIs and pay off your home loan with ease. Checking these aspects can help you decide if you are ready to be a homeowner.
Based on the five factors, you can make a decision whether to buy a home or work towards financing homeownership by renting a home for a few years. Then, when the time is right for you, consider a Home Loan with Bajaj Finserv to buy the home of your choice at a nominal rate of interest.
Bajaj Finserv brings you pre-approved offers for home loans, loan against properties and a host of other financial products. Not only does this simplify the process of availing financing, but it also helps you save on time. All you have to do is share a few basic details and check out your pre-approved offer.
Need instant financing? Think about it. Done with Bajaj Finserv.
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