Buying your dream home at a young age: smart tips

How much of your income does your household spend on rent, groceries, dining out, shopping, and entertainment? You don’t have to do anything manually anymore in this digital age because you can categorize your expenses and figure out how you’re spending your money with and then make a budget. There are several apps available to assist you in setting your budget. You can track your money expenditures by comparing your income with your expenses.

Do you have all the details sorted for buying a home at How many bedrooms do you want? How many amenities are you willing to pay for – parking, pool, clubhouse? Would you prefer a condo or an apartment? Are you interested in buying an apartment, an independent house, or a condominium? Are you looking for a condominium in the city or on the outskirts? Depending on all (and more) of the factors above, owning a house varies in price.

Depending on the square footage of your house, an outskirts house will cost significantly less than a city house. Knowing these details will help you save a lot of money. However, it’s important to set a budget in line with your current repayment capacity. Many people buy homes that they cannot afford, and then struggle with the EMIs later.

Consider investing your excess income instead of simply setting it aside in a savings account. Below are a few options to get you started. There’s no way to buy a home without a home loan. And home loans don’t come cheap. You’ll have to pay monthly EMIs, which are usually much higher than rent.

Calculate how much you’ll need to save each month for your home loan repayment using an online EMI calculator. It may be a good idea to channel your savings and investments so that you can set aside that much money every month before you start repaying your EMIs. When EMIs start, you’ll get a good idea of how to handle your finances.

Good credit scores could help you save on interest. Pay your outstanding bills promptly, don’t apply for too many credit products in a short period, don’t use more than 30% of your credit limit, and correct credit report errors, if any, to improve your credit score.