How much money should I save before buying a house in India?

Wondering how

to save money to buy a house in India

. Let me help you. The amount of money you should save before buying a house in India depends on several factors. It includes the cost of the property, your financial situation, and your long-term financial goals.

Here are some key considerations and expenses to keep in mind for

how much money you should have to buy a house

:

• The most important factor is the cost of the property you wish to buy. You are required to save a substantial amount for the down payment, 20% to 25% of the property price

• If you are

  opting for home loans to finance the purchase of a house. In addition to the down payment, you are needed to secure monthly EMIs (Equated Monthly Installments).

• You should save for other costs associated with buying a house, including:

• Stamp Duty and Registration Fees
• Legal and Documentation Charges
• Property Tax
• Home Insurance

It's essential to have an emergency fund in place for unexpected expenses, such as home repairs, medical emergencies, or job loss.

This is

how much to save for buying a house

.

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Owning a house has been a big deal to me. I have wanted to buy a 2 BHK apartment in an urban-posh area for the past five years. In my quest to find the perfect property, I have made many mistakes financially. I will give you a brief on how much to save to buy a house. I hope you learn from my mistakes. 

.

How much should you save to buy a house?

According to many real estate websites and investment experts, you should have savings of Rs 25-30 lakh to buy a property in an upcoming urban area. Though, this number is not definitive as the price of an area can vary depending on many factors like neighbourhood infrastructure and type of property. 

I assumed it would be easy to buy a property as I could just take out a home loan. I completely agree with those people who say, you need to save at least 25% of its sale price in cash to cover a down payment. Just to give you an example of how much to save to buy a house?

If the property price is Rs. 250,000, you might pay more than Rs.60,000 to cover all of the different buying expenses.

In metro cities like Delhi and Bangalore, properties on average are priced in the range of Rs 70 lakh to Rs 2.5 crore, the down payment amount is in the range of Rs 30 to Rs 45 lakh. So, you should have Rs. 45 lakh.

You should be saving for the down payment as well as the home loan EMI payment. I was wrong to begin saving home loan EMI earlier. Even if you earn Rs. 15,000 a month, you can put it in SIP and get a return of 12%. That way, you will have at least savings of Rs. 12.40 lakhs, in a matter of just 5 years. 

I will share a table below where interest rates will be displayed. It will give you a better idea about how much money to save for a house.

Buying a home is a dream that people strive for. To make this dream a reality requires a lot of time, hard work, thinking, and proper planning. 

If you want to buy a house you should start planning and saving as early as possible. For example, if you are at the age of 25, you will have enough money to invest in a property after 7-10 years. To know how much money should I save before buying a house in India, you must carefully plan your strategy to avoid hindrances that may come your way.

1. Avoid purchasing a house if you are in debt.

2. Avoid purchasing a house that can make you pay a heavy debt.

3. Avoid not saving enough to purchase a house.

4. You should also include other costs related to moving home and save your money accordingly.

Plan when to buy a house, where to buy a house, set a time frame, and start saving your money.

Create an estimation of the current cost of the house you want to buy considering the inflation rate. For example, if a property in Kolkata costs around 50 lakhs today, considering the inflation of 10% the estimated cost of the house would be around 80.5 lakhs after 5 years.

Based on your monthly income start saving your money. Usually, it is suggested to invest 20% of your income. For example, if your salary is 25k you must start investing 5k initially every month to buy property.

Calculate how much principal money you will be able to invest while buying a home. You can always take a loan to invest in a house.

Create a good relationship with your bank manager, who can help you invest in your dream house.

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