Buying your own home is the very first dream that most Indians try to accomplish after they start working. While it is a matter of pride to own your own home, there are many factors to consider before you take the plunge. The financial viability of the decision and the choice of location are crucial factors. CAs who have just started their career need to also consider their future business plans and how investing in a home will affect the liquidity position of their business.
The down payment can create a dent in your finances. You need to consider what % of the cost of the house needs to be paid as down payment. An analysis of how much of reserves you will have in your account after the down payment, has to be made. If required, negotiate with the builder to bring down the down payment amount. A special home loan for chartered accountants can come take the pressure off your savings which would be utilised to a significant extent when paying the down payment of your new property.
You need to have clarity about the long term plans for your practise. If you wish to expand your business in the years to come, it would mean huge investments by way of infrastructure, office rent, utilities, employees’ salaries and so on. If you have plans of growing your business, it may not be a wise idea to commit your finances for the long term by investing in a house.
While buying a home, it is extremely important to be aware of the source of finance. The right financing option should reduce the cost of lending and maximize benefits. Today various innovative and customised financial products like home loans for chartered accountants are available in the market. They come with various features which make them the ideal financial tool for CAs looking forward to buying their new home and make them score over a regular home loan.
Make a comparison of the rent you may have to pay for a rented home with the monthly EMIs that an own house would call for. If the rentals in your locality are affordable, it would be advisable to stay in a rented house and invest into your business. Purchasing a house would block your capital in a venture that is not income-generating.
A home loan for CAs offers high loan amounts up to Rs.2 crore which can be repaid in easy EMIs at a nominal interest.
Bajaj Finserv offers customised Home Loans for Chartered Accountants up to Rs.2 crore that is approved within a day from your application. With minimal documentation requirements and criteria that can be easily met by CAs is what makes these loans score over regular home loans. What’s more is that they come with value-added benefits like doorstep document pickup facility, property search assistance services and property dossier. You could also avail the loan in a Flexi Loan format and reduce your EMIs by up to 45% as you pay interest only on the sum used by you and withdraw and prepay the loan as many times you want at no extra cost.
The locality where you wish to invest your money needs to be chosen with care. The accessibility to railway stations, airports, supermarkets, schools and hospitals needs to be checked. The upcoming developmental activities need to be looked into. Investing in a locality which is growing at a fast pace would ensure you good returns on your investment.
If you are planning to buy a house in a premium locality, there is every chance that the maintenance charges are likely to be exorbitant. You need do your own research to find out the current maintenance charges in the locality and the likelihood of the housing society charging a premium for the kind of facilities on offer.