Are you dreaming of buying a house in 2022 while having a low income? No worries. You can still purchase an affordable home. Here are 5 tips for that.

Plan a budget

If you want to buy an affordable home, it's important to set a suitable budget for that first. You can consider the following expenses (of near future) to plan your budget:

  • Down payment to the property seller (up to 20% of the property value)
  • Memorandum of title deed (0.1% of the amount of your home loan)
  • Registration charges (at least 1% of the property value)
  • Stamp duty (5% to 7% of the property value)

Apart from this, you need to pay brokerage fees (if any), legal fees and costs of electric connection, water supply, interior decoration and more. Afterwards, home insurance may also factor in.

It's best to try estimating the non-loan costs so that you can spend within your budget. If you take a low-income house loan, the EMIs can be budget-friendly.

Also, Read - Impact Of EMI Default On CIBIL

Research different locations

You need to set realistic expectations of purchasing your dream home. The location is a factor that decides whether the property is affordable. So, try to research and compare the living costs of locations in different cities and towns. Often, the prices of houses on the outskirts are less than those in the heart of the city. You can consider that. If you opt for a low-income house loan from a good lending bank, you can use it to buy a house in any part of India. Plus whether you want an apartment, condo or independent house within your budget, the loan can finance its purchase.  

 

Choose the amenities carefully

The cost of amenities adds to the property value. Therefore, try to choose only those that you need. The most basic amenities usually include a parking space, a gym and a club. Ensure not to end up paying more for that tennis court or infinity pool that you'd never use but look impressive on the brochure.

 

Be open to a second sale

The second sale of residential properties is becoming common owing to swift mobility in jobs. Often, 2-3-year-old homes are sold at discounts or at least original prices. You can choose such property as an affordable option. If you wish to pick a ready-to-move-in unit (also expected to be affordable), consider choosing a bank that offers low-income house loans for this kind of property too.

 

Take an affordable housing loan

Consider applying for an affordable housing loan under the PM Awas Yojana/ PMAY scheme. But what is PM awas yojana 2021? Pradhan Mantri Awas Yojana is an affordable housing scheme under the Central Government. With a loan under PMAY, you can enjoy a subsidy benefit of up to ₹2,67,000. If you meet the PMAY eligibility criteria and belong to the low-income group or economically weaker section of society, you can apply for such a loan till March 31, 2022. Consider choosing a reputed bank for this purpose.

 Also, You can check pmay subsidy calculator

Just follow the above tips to buy an affordable home right in this year without exhausting all your savings.

Also, Read - Guide To Register For ENACH