Handy Tips to save for the down-payment for your first home

No matter how adequate it is or how flawlessly it fits into your budget, the rental apartment is, after all, something you can never attach to and can never call your own. Also, with the burgeoning rental rate, it is always a more modish idea to buy an apartment than to adjust to a rented apartment. Not only is it your asset, but it is a perpetual solution and a perfect investment for your family and future generations as well.

However, in defiance of bank loans being promptly available for the homebuyers, an individual should have a certain amount of their own saved up to ease out the buying process, apart from the loan amount. The amount we are talking about is ‘Down payment’.

The sum of money the homebuyer puts into the down payment tyrannizes the home loan amount by the homebuyer that avails from the bank, and by default, the homebuyer needs to pay back at the rate of interest to the bank down the line.

A down payment is the percentage of the apartment’s value that the individual has to pay without the succor of a home loan or mortgage. The down payment amount is feasible for the best residential projects in Bangalore.

Getting ready for the down payment, that too on a fixed income, however, can be intimidating if the homebuyer does not have an organized plan in mind. Let us discuss few tips that can help homebuyers to save for their dream home.

1. Try to spend hard cash instead of cards.

While using a credit or debit card may seem more feasible, it can cause a homebuyer to spend more than he would if they paid for a particular item using cash. It is shown in the reports presented by the experts on the psychology of spending, which states that credit card use unhitches the link between the consumption transaction, which is gratifying, and the irksome payment transaction. This trick is handy to save for the best apartments in Bangalore.

2. Push yourself for extra hours on weekends

Buying an apartment with a yardstick, firm income, is not comfortable. Therefore, pushing yourself to work on the weekends or one’s day off will be beneficial for the individual in the long run. Extra work will fill you up with consistent secondary income which can entirely go towards the homebuyer’s down payment.

3. Try to sell out the things no longer required by you

Anything that is not required – from the old vehicles to old furniture can be sold off. On websites like OLX, on average, a piece of old furniture can be sold at a decent price ranging from Rs. 4000 to Rs. 12,000. The amount you get may not seem like a crucial source of income. However, every penny counts. The luxury apartments in Devanahalli will be your permanent home if you start saving today.

4. Save at every point

Cutting down on any expense which is not requisite will go a long way in serving the individual save for down payment. An active home buyer can apply the thought process to various avenues of expenses ranging from the luxury expenditure (the amount a person pays on movies, at restaurants, etc.) to the amount an individual pays for filing up his tank monthly when compared to the amount he would pay by using public transport.

5. SIP is your saving tool

A SIP, or a Smart Investment Plan, is the best idea to save up for your down payment. With a SIP, every month, a fixed amount from your salary gets auto-deducted and saved for future purposes. This amount summed up with the interest that was added at regular intervals, and there! You have an amalgamated amount in hand which you can contribute to your downpayment.

Conclusion

After saving up for the down payment, one can move forward towards the other formalities and step into your own home. The next step would be to pay off the EMI of the bank loan while living in the dream home. All these steps will help you to save for the apartments near Devanahalli.