Money Saving Tips for First Time Home Buyers
Buying a house is the dream of everyone and requires a lot of hard work and money to be spent. However, with home loans, it is comparatively easier to buy your own house. Buying a home requires proper planning and research and spending your money rationally.
In this blog, we will discuss some money-saving tips and strategies for first-time home buyers to avoid overspending.
Money saving strategies
1. Make a budget
Before getting attracted to a fancy house you must know how much money you have to spend on your house. Make sure you have enough savings to buy a house.
Plan according to your savings such that you have enough money to pay the downpayment and EMIs. Another thing to be noted here is to analyze your monthly income and family expenses to know whether you will be able to manage your monthly EMIs payment along with your family expenses.
2. Avoid bidding wars
Buying a house in an auction can be a good idea and you might get a good deal too but only if you act rationally. Acting irrationally and involving in bidding wars can lead to overspending. It is very important to stick to your budget. So, before buying a home in an auction decide on how much you are willing to and how much you can spend on it. You may also buy a house which is in the market for a long time instead of an auction as it will be easy to negotiate and you might get a good deal.
3. Negotiate
While buying a house, bargaining is always preferred to get some discount on the house that you are buying. If you are someone who is new in the real estate business then, you might take some tips from someone who has some experience in this field and if not then at least you must try to negotiate. But before bargaining for the property make sure that you do detailed research about the property. Buying a house is not something that one does on a regular basis. It is a long-term asset. Hence, before buying a property you must do an in-depth study about the property to know about its drawbacks which the seller may not tell you. Like it may have irregularly sized stairs, awkward rooms, or old-fashioned bathrooms.
4. Don't compare yourself with others
Don't try to compare yourself with other people and buy a house that is big and fancy to improve your social status among your neighbors, relatives, or friends. Because this might lead to overspending and overburdening yourself with heavy loans. So, instead of buying a big house to impress your friends and relatives, buy a house that comes within your budget as well as suits your needs.
Buying a house with the spouse
If you are already married or soon to be married then, buying a house with your spouse will be more beneficial as it will save you some tax and legal costs. As per the rules, if you buy the house jointly with your wife then, being the co-owner of the house a woman can claim a deduction of up to 1.5 lakhs in the interest paid for the home loan.
Conclusion
These were some of the money-saving strategies that could help you to stay within your budget and get some discounts while buying a house. Properly following these tips may benefit you in various ways.
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