Buying a 2 BHK in Mumbai calls for some planned budgeting. Unfortunately, this is where most people go wrong. According to property experts, another important area where home buyers often make the wrong decision is while studying documents and paperwork pertaining to the property in question. This article covers the basic yet most important financial planning points to consider when you set out to look for 2 BHK flats for sale in Mumbai.
Here are the key basics of buying a home in Mumbai:
Budgeting: When we speak of financial planning in the context of home buying, it includes two things. The first is to save enough money to make the outright down payment. The second aspect would be to check your credit rating with a financial agency to understand your eligibility for a home loan. The home loan amount would be decided on the basis of your income and other current liabilities. So, for instance, if your flat in Mumbai costs around 1 crore INR, you would need to pay around 20-30lacs from your own pocket and a bank could finance the remaining 70-80lacs.
Borrowing: A lot of people borrow well beyond their means and face dire consequences later. Hence, it is very important to start saving money from an early age so that you have enough funds to dive in to when needed. Remember, budgeting for a home doesn’t just include the cost of the house and your property agent’s fees. It also includes other expenses such as your stamp duty and registration fees, MSEB and water charges, fees to be paid at the Registrar’s office, and fees for any other professional consultants such as lawyers or financial advisors.
Repayment: Once your loan has been sanctioned after the document work, the loan amount will be disbursed by your bank. You can then continue to take possession of your dream home. However, one cannot afford to lose focus of the fact that timely loan repayments are very important. If you default in the same, you might not be eligible for any financial aid the next time you seek it. Keep a part of your monthly income aside for repaying your loan. As and when you have some extra savings, you could also explore the option of making part payments towards your loan. For instance, if one of your financial investments has matured, you could consider diverting this money towards paying the loan for your 2 BHK in Mumbai.
There is ample choice in 2 BHK flats for sale in Mumbai. Owning one is just a matter of how well you plan your finances. A 2BHK in Mumbai is often an investment of a lifetime hence it should be made in the most judicious manner, while adhering to all legalities.
Financial Planning for a 2BHK in Mumbai