How to get a place of your own when you live in an expensive city?

Affording your own house in a large and expensive city

There are many reasons you may choose to live in a city that is considered "expensive." It could be that you need to work in that city or it may be a dream to live there. Whatever the reason, buying a home is a real commitment. So, if you plan to buy a home (especially in a big city), there are some things you should keep in mind.

1. Buy or rent

Before you even begin the process of buying a house, ask yourself this – is it worth buying, or should I just rent? Evaluate where you live, is it close to your office, can you spend time with loved ones, are essential services close to you, do you see yourself living in that city in 10-15 years? Once you have these answers, ask yourself, is it cheaper to pay rent or buy a house on EMI? The great thing about buying a home is that it will never be a waste, as it is an investment that will appreciate in time. However, you should make sure you can afford to pay off EMIs as these will go on for many years.

2. Make smart choices 

Buying a house is a long-term commitment, so looking for properties within your budget is vital. Be open to the possibility of relocating to a new neighbourhood if a particular property is not within your price range. Of course, you should also consider other factors, like schools nearby, easy commute, groceries stores, etc. If more space or lower prices are what you want, you might have to compromise and choose something a little on the city's outskirts. But it could be a smart move in the long run.  

3. Formulate a budget

Living in an expensive city can be costly in many ways. For instance, things like electricity, utilities, food, etc., tend to be priced higher than other cities or towns. So, when budgeting how much you can spend on EMIs, it is also advisable to consider your daily and monthly expenditure. Assess your savings, income, and financing options too. If you need financial assistance, look for a reputable lender that can offer the amount you need and at a reasonable interest rate. For example, when applying for a home loan with IDFC FIRST Bank Home Loan you can expect competitive interest rates with minimal documentation.  The lower the interest rate, the more feasible your EMIs will be.

Along with finding the right financial assistance, it might be prudent to save up a considerable amount for the downpayment. A larger downpayment could mean more affordable EMIs in the long run. An excellent way to do this is by investing the suitable investment instruments, like mutual funds or opening a savings account and putting every spare penny into it for as long as possible.   

In conclusion

As you can see from the points mentioned above, buying a house in an expensive city is not necessarily a far-fetched dream. It is just a matter of priority and making intelligent decisions. And with a banking partner like IDFC FIRST Bank, you can turn this dream into reality. 

Disclaimer

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