Tips to Save Money for Buying a House
Buying a house can be one of the biggest landmark moments in your life. We dream of buying our own house or apartment where we can create a home for ourselves and our family. However, purchasing a house is quite taxing financially. With the pace at which the prices of real estate properties are rising, it becomes a mandate to start saving for it from an early age. If you are also among the ones who are confused about how to save money to buy the property of your dream, then we are at your disposal. We will help you get versed with some of the tips and tricks that you can follow to save money for buying a house.
1. Start Early, Start Small
It might be a lot to ask when it comes to saving for a dream house with the amount of funds, we earn for most of us. However, starting early in your life and that too with a small amount of money will save you from getting overwhelmed with the end amount that might be needed to buy a house. Decide when you are looking to buy a house for yourself and then divide the payment for a down payment by the number of months left and start saving that amount each month to not feel the pressure when buying the house.
2. Have a Diversified Investment Portfolio: Invest in Mutual Fund, SIPs
Without much of a stretch, you can create a corpus that will permit you to set aside some funds for buying a house by putting resources into various financial tools or instruments. In light of your risk profiles, you can put resources into financial instruments like Mutual Funds, equities, government, and depository securities, and so forth. You might choose Public Provident Funds (PPFs) or Fixed Deposit (FDs) to fabricate a corpus while saving your capital sum and diminishing the risks that come with investments.
3. Invest for your future EMIs
After we are sorted with the down payment of the house, the next thing that we will have to take care of is the EMI that needs to be paid after the signing amount is paid and you have been given the possession. If your savings were enough for the down payment, options like PPF, Mutual funds, RD, FD, SIP, etc. can be considered to save the amount that will act as the EMI amount for the dream house. Even opening a zero-balance account online can turn up to be a good plan for saving the amount that you want to utilize as an EMI payment option.
4. Check Eligibility for Government Schemes
The Pradhan Mantri Awas Yojana (PMAY) is a government drive intended to help people buy or build their first homes. PMAY is a Credit-Linked Subsidy Scheme (CLSS) that offers appropriations to families falling inside three slabs that are arranged by the government in view of their yearly pay.
5. Build your savings in a high-yield savings account
Gathering your funds in a savings account is likely the most straightforward decision you can make. Notwithstanding, standard savings account typically accompany a low rate of interest and, in this way, offer less return on your funds. Assuming you wish to acquire a higher interest rate when contrasted with your ordinary account, you can decide on a high return savings account. Before you choose to save, you want to think honestly about how much your fantasy home would cost in the future. Besides, to keep right, you want to concentrate well and likely counsel, a specialist, to guide you through the cycle.