Buying an apartment is a dream that many people have; owning your own home, small or large, is a matter of prestige. It also gives a feeling of security, and so more people prefer to own than rent. Nowadays, homeowners are keener on purchasing apartments rather than separate houses like villas. This could be because of some reasons like:
- There is more safety as there are guards round the clock, and a gate that is usually locked at night
- Most builders, especially for flats in Thrissur, provide amenities like
landscaped gardens, pools, children’s play area, gym, common hall for functions, etc. - Garbage collection and cleaning of premises is centralized
- Water and electricity connections are all done beforehand by the builder
- You have more neighbors and a community; it’s easier to make friends and find help
However, it is a huge investment – there is no doubt about that. Most people usually apply for a home loan to buy apartments in Thrissur or elsewhere. Unless you’ve recently had a windfall, you’ve sold off an existing property, or a rich relative left you pots of money in their will, you will need to save up to be able to pay the EMIs of your home loan.
Here we present to you a few tips on how to save money for an apartment in Thrissur.
1. Planning Finances
Setting a goal is critical when it comes to saving money for any specific purpose, even if it is for an apartment, or anything else. Ideally speaking, you should not spend more than 30% of your income on your home loan EMI, because you will have several expenses: day-to-day travel, groceries, etc; monthly bills like power, water, household help, maintenance, and so on; plus you will need to have some money in hand for emergencies.
Let’s say you earn 40,000 a month (you should include income from every source – salary, profits from business, interest on deposits, dividends on shares, and so on); this means you should look for a term and interest rate whereby you will pay 10 to 15 thousand a month towards your home loan repayment (EMI). Then you can plan how much you will spend on all the stuff like groceries, utility bills, entertainment, and so on. Remember that no financial institution will disburse 100% of the cost of your flat in Thrissur as loan. The usual practice is to grant around 80 to 85% of the value of the house you are buying. Some NBFCs may disburse up to a maximum of 90% of the property value. Still, you have to pay the remainder as down payment. Here is a step by step guide to home loan process in India.
So you need to see how much money you’ll have to put down initially, then take a look at your EMIs, and then plan accordingly. Here it is important to remember that you need to set realistic, achievable goals. Nobody can live on just bread and water for months on end. You do need to enjoy the present too.
2. Decorating Your Apartment
When you’re moving into a new apartment, you will have a few expenses which you may not have considered initially. First of all, you will need to pay a moving company to move all of your stuff from your current residence to your new apartment in Thrissur; it’s also highly likely you will need to spend on stuff like furniture, appliances, furnishing, and a few knick-knacks.
Don’t’ forget to factor in these costs when you’re planning your finances. If you’re finding it difficult to manage, try to purchase appliances and furniture secondhand for the time being, and hunt for other stuff at flea markets or artisans’ markets where you’re likely to get these things cheaper than at big stores. If you spend too much on doing up your apartment, you won’t be able to save any money at all, and it may prove to be disastrous. Be realistic; don’t be swayed by pictures of stunning apartments in magazines; your life is your life, and it’s not in a magazine. Be practical, and understand that you will need to compromise a little to be able to save money for an apartment EMIs. Get some low cost interior design for homes in Kerala.
3. Cut Costs Where Possible
Do you have subscription to Amazon Prime, Netflix and Cable? Do you really need so much entertainment? Are you going to have the time? Just keep one or two things, and even in your cable TV pack, keep only essential channels that you’ll actually watch. Get rid of the rest. Be careful with your utility usage, especially electricity; switch of all lights, fans, and appliances, especially heaters and irons when not in use, and be vigilant about switching on the A/C. Once the room cools, switch it off. Get some tips for how to keep electric bill low in summer
Don’t order takeaway food or eat out at restaurants often; we don’t realize it, but we end up spending a huge amount when we don’t cook at home. Not to mention that we end up eating food that is not too healthy for us. Reduce your outings to malls and cut down shopping sprees. Buy only what’s necessary, and shop when there is a sale. Instead of going to supermarkets to buy groceries, visit your local grocer – you’ll be surprised to see how much money you save. In supermarkets, products are placed in such a way that you are tempted to buy a lot of stuff you don’t need immediately. Keep a record of your every expense – nowadays you get apps to help you track your income and expenses. This will help you see where your money is going, and help you cut down on unnecessary spending as well.
4. Other EMIs
Do you have other loans, like car loan, personal loan, credit card bill EMIs, and so on? If yes, you need to be doubly cautious, and plan so that you are able to meet all of these expenses. Here are a few things you can do:
Shop around for a lender who is willing to take over your car loan from your current provider at more favorable rates. Check if you can get a credit card from another bank, and transfer your existing outstanding amount to the new card at lower interest rates. You can get some information about the credit score for first time home buyers.
5. Save a Little
This is extremely important. At the end of the month, your bank balance or cash in hand amount should never read zero. What if there is a medical emergency? A loved one’s birthday? Urgent repairs to your vehicle, or home appliance? You should aim to save around 20% of your monthly income; it’s understandable that in the initial months of moving into a new apartment in Thrissur, it may not be possible, as you have to buy a lot of stuff for the house. In such a case, make it a point to put away at least 10% of your income into a fixed or recurring deposit, or buy shares, or invest in an SIP or mutual fund – whatever you prefer. Again, here we are talking about an ideal situation. It may not always be possible to achieve, so if it doesn’t happen, don’t feel too bad about it. But you should definitely try your best to meet these goals.
There may be other ways how to save money for an apartment; if you can come up with a few of your own methods, great! The important thing is to be able to stay in the green, and not get into a financial crisis because you want to buy your own apartment in Thrissur. Be cautious with your expenses, ask family to chip in, and you will be able to manage just fine.
Hi-Life Builders is one of the best builders in Thrissur. Apart from building wonderful homes, our portfolio includes home care, resale, and home loan assistance and you will be happy to know that we have a dedicated team for after-sales service and property management service. For further information on our project contact us now!