Buying your own home is a milestone for most of us. Since buying a home is generally the largest single purchase you ever make, it makes sense to start saving money for it. However, it has been observed that many of us buying our first homes underestimate the amount of cash we will need to purchase our dream home.
Your guide to starting saving.
1. Breaking Down the Costs
There are various costs involved when buying a house. The first barrier to buying your first home is the upfront down payment. This is the most important cost that you need to bear at the time of booking your house and generally eats up your savings. Then there is the cost of registering the house, interiors and moving expenses, etc.
The cost of the registry and other costs (sometimes there is lease transfer cost) is quite high and varies from state to state. The moving expenses can also easily run into thousands.
2. Separate Account for House-Buying
You may set up a separate house-buying account where you may transfer some money every month from your savings. Keep it aside for lump-sum money payment at the time of purchase.
You may even set up an automatic withdrawal arrangement with your salary account where a stipulated amount of money is automatically transferred in a month to this account. However, you should do this only after repaying any high-interest, unsecured debts, such as credit cards.
3. Save Your Windfall Gains
If you happen to receive an unexpected sum of money, such as a bonus at work, a tax refund, or some other, don’t splurge; instead, put this amount in your house-buying account. Over some time, some interest in this savings account will also accrue.
Suggested Read: TIPS FOR INVESTMENT IN PUNE
4. Go for a lower rented house
Once you have decided to buy a house, there is no point wasting money through higher rents. You may consider moving to a smaller, less-expensive house or get a roommate to share the costs for your current place if you are single.
5. Cut the Luxuries
If you’re saving for a house, you’ll naturally be wary of making any big purchases on fancy vacations or expensive stuff. However, you must keep a watch on the little stuff, too. A fancy cocktail in a bar, dining in high-end restaurants now and then can cost you dearly. Budget your cash strictly, and put the savings in your home account.
6. Trim Routine Expenses
If you dig deeper, you might find that some of your monthly ongoing expenses can be eliminated. Figure out these expenses and find alternate arrangements. For instance, get a cheaper cell phone plan, take occasional cabs, share your trips, and so on.
Living in large cities like Pune is very costly. When you plan to buy a house here, apart from generating savings what is even more important is to book your home with a developer who holds a good reputation for service quality and timely delivery of projects. It is important to safeguard your hard-earned money and invest with projects/ developers with great credibility in the market.
If you are looking to buy a home for yourself in Pune there is one project you must check out, Neco Beaumont. Neco Beaumont is a project from Vasupujya Corporation; this reputed developer boasts of 20+ real estate projects at prime locations across Pune & Mumbai. Neco Beaumont offers 1 & 2 BHK flats in NIBM, Pune. The main USP of this project is that no two flats share a common wall. Besides, the project is located near 150 acres of open forest & park reservation.
Follow the above-said guide to start saving for your first home. Any small savings would certainly contribute to your big-ticket purchase and if you are looking to buy 1 & 2 BHK flats in Pune, check out Neco Beaumont.