Many millennials want to secure their financial future and improve their quality of life, so they prefer homeownership over renting. They want to invest in housing projects close to business, commercial, and social infrastructure development. After a hectic day at work, they want to spend quality time doing leisure activities to rejuvenate themselves.
Ashwin Sheth Group understands that buying a house is the most important financial decision that you will be making in your life.
If you are a millennial looking to buy a house, here are six things you can do to make that dream into reality.
Determine a Realistic Budget
When it comes to home buying, you should know this critical rule: don’t buy a house you can’t afford. What you can buy and what you can afford are two different things. Therefore, it is always wise to determine a realistic budget that you can afford to spend on a residential property in Mumbai.
When you buy a home, there are one-time expenses, such as down payment and closing costs. But don’t forget there are also ongoing costs you must prepare for, including homeowners’ insurance, property taxes, and routine home maintenance. Being clear about your affordability helps you find a budget-friendly 1 or 2 BHK flat in Mumbai.
Select an Ideal Location
The location of the property impacts its price. It is essential to consider factors such as neighborhood safety and proximity to social and commercial infrastructure. In any case, buying a house in an ideal location will be a great investment choice and give you a higher ROI in the future.
The price of the property also varies based on the builder. Reliable and reputed builders charge a premium rate for their residential projects in Mumbai, while relatively new builders charge less.
Save Money for a Down Payment
One of the best tips for millennial home buyers is to start saving to create money for the down payment. It is the portion of the total purchase price you pay to a bank. Consider saving at least 20% of the purchase price of the home. The reason is it decreases the amount of debt taken on and eases the impact if there is a downturn in the market
Work on Your Credit Score
A good credit score is a huge driving factor in determining your eligibility for a home loan. Most lenders check scores for reliability and your past performance, which indicates your future performance. They prefer giving loans to homebuyers with good credit scores. Therefore, ensure to pay off your outstanding debts on time because an overdue payment can impact your score. Regularly paying your bills on time proves that you are reliable.
If you struggle with remembering to pay bills, then consider using automatic payment options or calendar reminders to stay on track. Also, check your credit report for any inaccuracies and dispute them immediately. If your credit score is low, you should take all the necessary steps to increase your credit score for a home loan.
Hire a Reliable Real Estate Agent
Hiring the services of a reliable real estate agent can help you get a good property deal within your budget that fits your expectations and lifestyle. The real estate agent has the experience to handle the legal aspects of purchasing a home and can guide you through the home loan process, including loan eligibility and interest rates, among others.
Understand the Buying Process
As a home buyer, be familiar with the entire home buying process by consulting financial or legal experts. It is essential to be fully aware of the property’s clearances, legal disputes, and other issues. Understand the buyer-seller agreement, including the charges involved in the property buying process. Also, enquire if the real estate developers provide any offers or special schemes.
Owning a home in your 30s is an excellent way to move on from rental living. It takes more planning and dedication to buy a house, so use these tips to improve your chances of homeownership.