Home is not just a place, but it’s an address from where the happiness of life begins. For obvious reasons, buying a home tops the list of dreams. Especially for those who are going to buy a home for the first time, numerous things hit their mind regarding location, view, amenities, budget, loan sanction, and many other factors. So, if you are also the one who is planning to buy a home in India for the first time, then here is a valuable set of tips that you can surely cherish during the journey of your home hunt.
Financial planning is the key.
Holistically scale client is quite obvious that you are excited about your first home, but you need to plan your finances before buying your abode. First, understand the fact that property investment holds low liquidity. Hence, converting all your savings is not at all a good idea. So, what you need to do is, maintain the right balance between your savings and debts.
Now, if you are looking to take a loan for a home purchase, then the eligibility criteria for the same are based on these two points:
- Income Eligibility- Under this section, the lender will consider your monthly earnings as an obligation to summarize your eligibility based on your net income.
- Property Eligibility- According to the Reserve Bank of India (RBI) norms, a loan should be bound to the property’s market estimation.
Awareness of government schemes
Once you are done with proper financial planning, you should have a full-fledged idea of the government’s schemes. Yes, the government of India is making the dream of purchasing a new home easier through multiple schemes. But among all these plans, PMAY is the most suitable for new home buyers.
Pradhan Mantri Awas Yojana
The Pradhan Mantri Awas Yojana (PMAY) has been implemented to provide affordable housing to the urban poor by 2022. However, the scheme came into action on 1 June 2015. The interest rate for the PMAY scheme begins at 6.50% p.a. and can be sanctioned for a tenure of up to 20 years.
Know complete costing
Holisticly monetize low-risk high-yield platforms with standardized growth strategies. Assertively plagiarize Wait a while if you are getting fascinated with the offer which says, “Buy your dream home for XYZ amount only.” We are saying this because such offers never represent the final cost of a property. Since multiple taxes and associated costs cover the total amount. In the row of various taxes, the Goods and Service Tax (GST) is one of the most prominent taxes. Besides, the expense of stamp duty also hits hard on the pocket.
But as a sign of relief, the government offers several tax breaks for women and senior citizens. Furthermore, the tax slab varies from income to income. Therefore, understanding the complete cost plan before buying a new home is a big must.
Several tax breaks contribute significantly to the home loan borrower’s benefit. We have enlisted the main tax benefits in the below-mentioned section. But, all these tax benefits are subjected to specific conditions. Check out the list now:
1. Deduction Under Section 80C
Under this section, you can take advantage of up to INR 1.5 lakh for the principal loan repayment.
2. Deduction under Section 24
Under this section, you can get a deduction of INR 2 lakh on the home loan interest.
3. Deduction under Section 80 EEA
This section applies only to first-time home buyers. Under this scheme, the buyer is free to claim an additional deduction of INR 1.5 lakh over and above the INR 2 lakh on a home loan’s interest.
The last but one of the most significant tips for a first-time homebuyer is to focus on location advancement. Always ensure not to compromise with the prime location basics when buying a new home. More than that, keep eyeing the concern of in-campus amenities and green surroundings. It is best to choose a home that ensures proximity to hospitals, schools, malls, and local markets.
So, in the above article, we have mentioned the best bunch of tips for first-time homebuyers in India. We believe that our article will surely assist you in purchasing your home with no further delays.