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Here’s how you can buy your dream home on a single income

Buying a home is an important decision for many. Whether it is an important asset, an investment, or a need, this purchase needs careful consideration and planning. These days, a growing trend is single ownership of a home often bought on a single income.

While it may seem overwhelming, it is possible to purchase a home on a single income without compromising significantly on lifestyle. Sound financial planning and detailed research can help purchase the right home for your needs. 

Here, are some effective tips that can help put you on the shortest path to your dream home. 

Plan out your budget

Buying a home is a good investment that should not be taken lightly. The first step is to carefully plan out your budget. Make a note of all necessary expenses and investments from your income. Identify the budget that is possible for your dream home and look for properties that match your budget. Poor financial planning at this time can make things a lot more difficult in the future. 

Research numerous properties

Property value changes with every change in detail. From the number of bedrooms to the availability of parking space, every aspect impacts property value. Make a note of the factors that are non-negotiable. Look for homes that fit this criteria across locations. Sometimes, a distance of a few kilometres across properties can allow for huge savings while offering the same amenities. 

Cut down on unnecessary expenses

Every bit of savings can help at this time. Analyse your expenses to see where you can enhance your savings. Tips like eating in instead of ordering out or buying groceries at wholesale prices may seem insignificant when saving for a home, but when accumulated, these savings can be highly beneficial. 

Make your money earn

A good way to boost your financial standing is to invest your money instead of simply saving it. Talk to your financial advisor for investment opportunities that offer a return and risk ratio that is best suited to your needs. Timely investment can help you achieve your budget goals faster and more efficiently. 

Save up for your down payment

This will be a significant expense and one that should be well-planned. Once you have researched on your dream home and the possible budget, you need to start saving for a down payment. Typically, this amount can be anywhere between 15-25% of the property value. Set up a separate fund for the down payment which you don’t use for any expenses to ensure it remains untouched. 

Bring up your credit score

This number becomes even more important when purchasing a home. The higher your score, the higher your chances for a loan, better EMI options, and even competitive interest rates. To boost your score, eliminate all your debts. Additionally, don’t max out your credit cards too much. Try to lower your credit expenses and pay any outstanding amounts as early as possible. 

Research on home loans

There are numerous home loans available in the market but they may not be suitable for you and your budget. Read through the terms and conditions of various loans and their EMI options. While some may seem attractive in the short-term they may turn out to be extremely costly in the long run. Get a rough estimate of your likely home loan and Emi charges to know the amount of saving required. 

Know the charges involved

There is a lot more to buying a home than just the property value. Everything from the registration cost, deed amount, insurance, to stamp duty, adds to the total expenses. Additionally, all amenities are chargeable – be it within an apartment or a home, so make sure you have factored in those expenses when planning your budget. 

Inspect the property carefully before purchase

Other than the financial aspects, this is a crucial step. No one wants to spend years saving up for a dream home only to be stuck with a property they don’t like. Ensure every aspect is as agreed upon. In case of any concerns, it may be possible to negotiate the sale price. Additionally, look for issues such as seepage or leaky pipes that may indicate an underlying concern. Some of these can be extremely expensive to fix later.

These days a single income isn’t a deal-breaker when it comes to purchasing a home. For every budget, the expansive real-estate market has a matching property. What is important is good research and disciplined financial planning to ensure you find the right home for your needs and budgets.