Having a safe and secure roof over your head is something all people look forward to. It’s one of the basic needs of every human. But if you think that is all the purpose of a home, then you are wrong. Owning a property or a home is also an addition to your asset portfolio. The more capital you invest in assets the more diversified will be your means of earning off them. Investment in any capital property and accumulation of the same, especially a home or Doral apartments or flat, is quite beneficial. Since you get to yield interests off it, sell it at a later date when prices have hiked. Make a profit off it, let it out for renting and other purposes. Create a steady flow of income or last but not the least, plan to stay in it with your family.
Choosing property for end use
If you are going for a property that you want to live in or rent out, called end use. That is you or any elected party courtesy of you will be actually physically using it and its associated amenities. Then the following points need to be kept in mind.
- The property should be well planned, idyllically situated to match your family’s needs and also spacious enough to accommodate all.
- A home that is optimally distanced from both the workplace as well as the schooling area. Hospitals and other basic facilities one might need, is a practical one.
- Try to split out your loan amount under another family head. In that case, not only would you not have to bear the total tax burden all by yourself, which along with the pressure of loan repayment may prove to be quite a lot but also help you repay it faster and at the same time save up more.
Choosing property for investment
This step needs careful deliberation. A lot of banks would offer you initial low interest rates but later hike it up once a fixed timeline has subsided. Further, the property you are investing in should have the potential to live up to the standards of your loan. If it is essentially a profit making plot with its possible valuation in the market only increasing. Then it might be good for investment.
- Buy a property that has reputed builders backing the construction process. And especially in an area with the scope of possible development and urbanisation in the near future. That will no doubt up the ante of your property value.
- A property near completion is always a better choice than a property, which is undergoing construction in its initial days. That would help you reap the returns of your investment in a shorter time span.
- Go through possible home loan ventures and investment plans thoroughly before deciding to purchase an asset.
Key factor for deciding to purchase a home for end use or as an investment
The primary thing however that one needs to consider is whether you are actually eligible, both financially and legally to do it. Hence we introduce the concept of the home loan eligibility calculator.
Home loan eligibility calculator
This is usually the most feasible and popular way to adjudge whether a customer is eligible for applying and getting approved for a home loan. The eligibility criteria take into consideration various factors like monthly income, fixed monthly obligation, current age, retirement age, etc. Further, your income as well as your co-applicant, if any, his/her income becomes a necessary factor of judgment based on which the loan amount and sanction decisions are made.
Based on the applicant’s salary, it takes into account the age of the person, the type of company he/she is employed in, his/her current position and future prospects. Further, the person’s credit history, history of loan taking and if any possible mortgage that has already been put on the housing asset are also taken into account.
Once you try to test whether you are eligible for taking out a loan, you’ll have to fill in the following details at the bank’s online home loan eligibility calculator – your current residence, your nationality, kind of property you are interested in, the locality, your income and your co-applicant’s income, your credit history, your previous transactions, your bank account details and the kind of deposits you’re willing to safe keep at the bank as collateral.
If you have passed this phase, then the rest of the steps might be nothing but a cakewalk.
- The area or locality of your housing property always determines the worth of your house and accordingly the bank sets the amount of loan you are eligible for takeout. It not only affects the price but also your finances, so a well-thought-out cost-benefit analysis is always recommended.
- If there are scopes for future development, industrialisation or urbanisation of the area, then it might affect the housing prices. So, it should also be considered while applying for a home loan or making your investment decision.
- The RERA registration and title deeds of the property are also required to be showcased to the lending authorities to prove your eligibility.
Now that you know this to go on about diversifying your portfolio and adding to the stock of purchase or investment, don’t delay the process anymore. Get onto any well-known banking website and make the right choice today.
