4 Economic Factors That Help Determine The Final Cost Of Your House
A common misconception related to real estate investments is that you should purchase it as soon as you can afford it or the moment your loan application gets approved. However, there is more to home buying than just affordability. Ask yourself if the interest rates, property prices and other economic factors are amenable at the time or not? What are these economic factors that we must even consider?
Here’s everything you need to know when you’re looking to buy a house –
1. Taxes you will be paying
For many, buying a house often feels like a once in a lifetime opportunity. It is an important investment decision, but can be taken care of smoothly, if done the right way. A real estate investment is a combination of the principal amount and overhead taxes. Before you make up your mind to invest in a residential property, take note of the entire amount payable and not just the base price.
2. Insurance and security
When you buy a house, make sure you do everything to protect it. Security of the households as much importance as its purchase. First things first, consider taking home insurance as it protects your house from theft and damage from natural calamities. Purchasing a house is a long-term investment that carries practical utility. You live in that house and you would want it to be safe, which is why taking measures to insure it is one of the first steps to building a home.
3. Debt to income ratio
During the stage of deliberating what your home investment budget will be, it is best if you also determine your debt to income ratio (DTI), which accounts for a percentage of your fixed monthly expenses (or debts) when divided by your monthly income. It is important to know this ratio percentage before you purchase a house, as it helps you evaluate how much you can afford to spend in a month.
4. Supplementary expenses
These expenses amount to the peripheral costs that may arise during the stage of buying the house. For instance, if you have taken up the services of a real estate broker, then you will be subject to paying him a certain amount as well. In addition to that, there are other legal, maintenance and registration costs that might add to the total price of the house.
Be mindful of the choices you make and consider all of the above transactions before you make a decision of investing in a real estate property. Since premium housing demand is on the rise and people are constantly on the lookout for modern, luxurious homes – House of Hiranandani launches thoughtfully designed, new-age residential properties that make for a great investment choice. Check out the upcoming new projects in Devanahalli, Bangalore, new flats in OMR and residential properties in Hebbal, Chennai. Giving your family a beautiful home at House of Hiranandani properties can just be the best decision and investment of your life!