After successfully graduating from college and settling on a job in the workplace, next comes up the plan of buying a new home. Generally, people in past decades only start to decide on buying a property nearing retirement. But, this typical scenario has changed today as most people are now planning to purchase their own home in the late 20s and early 40s.
The most significant thing to remember when it comes to buying a property is financing. Individuals may have a steady flow of high income, yet they lack a huge amount of money required to own a house. This is where only a better financing saves you. There is a wide number of financial solutions you can endeavour such as home loans, savings and seller financing and so many that make your dream come true. So here are some of the financing ways you can take up to meet your dream soon.
One of most basic and the prominent financing way most home buyers choose is to apply for a home loan. People who apply for a home loan come across the following terms that play an important part in the process of home loan approval.
(A) Down payment
(B) Rate of Interest
Down payment is the amount you ought to pay upfront to the property developer or seller. The minimum amount for a down payment for a home loan in India is about 10% to 20%. Also, the minimum rate of interest any lender or bank set is 8%. In fact, one can also avail funding for the interest from home loans offered by the Pradhan Mantri Awas Yojana scheme to get funding up to 2.50 Lakhs approximately. Here are a few ways you can arrange for a down payment.
Rent sometime to buy the property
A new way of financing your property purchase in our country is to rent the property you wish to purchase for a while. While you live in the house as a tenant for a few years, save money for the down payment and pay it to the homeowner. Meanwhile, you can improve your credit score to funding your property while you pay the rest of the money through monthly rents to the homeowner.
Though seller financing is not a very popular practice in India, you can get funds for properties which are not sold in the real estate market today. In this case, the lender you borrow money is not a third person but the seller itself. You ask the seller and talk them be your lender and pay the instalments directly to the seller. By doing so, there isn’t any third party in lending you funds. This is a great option for those who do not opt for the traditional approach or unqualified for a home loan.
Liquid mutual funds
This would be the suitable approach for saving funds in a short period of time. Investing in liquid mutual funds is the best way to save your money in the very small span of time. This is another approach where you invest money for a short-term period in the markets to get high returns within a few days or months time. In this type of investment, you gain around 6 percent returns annually, which is a helpful way to get additional money for buying properties in Chennai, Bangalore, and other major cities in India.
About Alliance Humming Gardens
Alliance Humming Gardens offers Independent villas in OMR in a Gated community along the IT Expressway in Chennai, which makes the best investment choice of your lifetime.