The purchase of a home is an essential factor in everyone’s life. The prices of the houses have gone up due to various factors like an increase in the cost of construction, increase in labor charges, increase in the land prices, and increase in the ready reckoned rates set by the government. Thus due to the continuous rise in prices of the properties, it is becoming difficult for people to buy a house which suits their budget. Many people, especially in urban regions, are forced to stay in rented apartments due to high property prices. The ready reckoned prices are also increased by the government gradually for various developmental works like the construction of cement concrete roads, construction of flyovers, construction of metro rails, underground electrical works, and water supply arrangement for the rising population. The prices of the properties also increase due to builder’s lobbying or creating artificial demand and gradually increasing the prices of the properties. Thus planning a budget for the common man is very difficult for buying the house. The bank’s charges on home loans are on a continuous decline due to the falling repo rate of RBI. 

Thus there are multiple factors being considered by an individual during the purchase of homes. The key points considered are the cost of the property, public transport in the locality, frequency of the water supply & electric supply in the locality, quality of roads in the locality, overall density of population and traffic congestions in the locality, public staying in the locality, and also the convenience regarding the travel to a nearby school, college, place of work. Etc. All such factors are taken into consideration while buying the flat. Some miscellaneous matters also matter, like safety in the particular locality, crimes happening in the locality.ETC. The other factors include the amenities provided within the society, availability of garden, swimming pool, gymnasium, clubhouse. Etc. The in-house amenities add value to the property. The loan is sanctioned from the bank is also a critical factor for making the purchase decision of the banks. The banks approve loans maximum of up to 80% of the property value, but the actual approval of the loan amount also depends upon the salary of the applicant. The higher the salary higher is the loan being made available to the borrower. The locality should also be accessible to commercial spaces; recreational areas are one of the important factors considered for the purchase of the house by the flat buyer. 

Following are the things to consider about the budget while buying a new home:

• Loan approval for the property:

Home loans approval is the major factor in deciding the budget of the flat buyer. The loans approval depends upon the salary of an individual. Accordingly, the eligible loan amount can be shown to the borrower. Before approaching the bank, the applicant can check on the bank’s EMI calculator, where the details must be put. Then according to the loan approval, the applicant can fix their budget and book the flat according to the loan amount sanctioned. 

• Stability of the job and the future increase in income expected:

The borrower can plan the budget according to the stability of the job and as per the increment to take place in the current job. If the income is expected to rise steadily, then, in that case, the applicant can plan to buy the flat of the higher amount. 

• Total savings in bank account:

Savings is another important factor that helps the buyer plan budget accordingly. The savings are required for the down payment of the property value. Around 20% of the property value needs to be paid for the purchase of the flat, which the borrower should have in the bank account to purchase the flat. 

• Estimating the monthly expense required:

The applicant should take into consideration the monthly expenses required for the basic monthly liabilities and accordingly should plan the budget. Thus the budget of the flat buyer may vary according to the expense liability. Excluding the basic amount of expense liability, the flat buyer can avail of loans and pay for the EMI accordingly. 

Conclusion:

The cost of the flat to be purchased depends on majorly two factors the loans installments required for the flat purchase and the total savings available for the down payment of the flat. The payment terms & conditions also matter a lot while buying the flat from the real estate developers. Thus multiple factors are being involved in deciding the budget by the flat buyers. 

Thus there are multiple factors being considered by an individual during the purchase of homes. The key points considered are the cost of the property, public transport in the locality, frequency of the water supply & electric supply in the locality, quality of roads in the locality, overall density of population and traffic congestions in the locality, public staying in the locality, and also the convenience regarding the travel to a nearby school, college, place of work. Etc. All such factors are taken into consideration while buying the flat. Some miscellaneous matters also matter, like safety in the particular locality, crimes happening in the locality.ETC. The other factors include the amenities provided within the society, availability of garden, swimming pool, gymnasium, clubhouse. Etc. The in-house amenities add value to the property. The loan is sanctioned from the bank is also a critical factor for making the purchase decision of the banks. The banks approve loans maximum of up to 80% of the property value, but the actual approval of the loan amount also depends upon the salary of the applicant. The higher the salary higher is the loan being made available to the borrower. The locality should also be accessible to commercial spaces; recreational areas are one of the important factors considered for the purchase of the house by the flat buyer. 

Following are the things to consider about the budget while buying a new home:

• Loan approval for the property:

Home loans approval is the major factor in deciding the budget of the flat buyer. The loans approval depends upon the salary of an individual. Accordingly, the eligible loan amount can be shown to the borrower. Before approaching the bank, the applicant can check on the bank’s EMI calculator, where the details must be put. Then according to the loan approval, the applicant can fix their budget and book the flat according to the loan amount sanctioned. 

• Stability of the job and the future increase in income expected:

The borrower can plan the budget according to the stability of the job and as per the increment to take place in the current job. If the income is expected to rise steadily, then, in that case, the applicant can plan to buy the flat of the higher amount. 

• Total savings in bank account:

Savings is another important factor that helps the buyer plan budget accordingly. The savings are required for the down payment of the property value. Around 20% of the property value needs to be paid for the purchase of the flat, which the borrower should have in the bank account to purchase the flat. 

• Estimating the monthly expense required:

The applicant should take into consideration the monthly expenses required for the basic monthly liabilities and accordingly should plan the budget. Thus the budget of the flat buyer may vary according to the expense liability. Excluding the basic amount of expense liability, the flat buyer can avail of loans and pay for the EMI accordingly. 

Conclusion:

The cost of the flat to be purchased depends on majorly two factors the loans installments required for the flat purchase and the total savings available for the down payment of the flat. The payment terms & conditions also matter a lot while buying the flat from the real estate developers. Thus multiple factors are being involved in deciding the budget by the flat buyers.