When is the right time to buy a house?

hello and welcome to Ellen markets today

I'll be talking about the various

factors that one must consider before

buying a home almost every one of us

desires to live in a beautiful house

though those of us that already do

should consider ourselves very

privileged but there many who do not

have this basic need we're covered young

adults soon after they start earning at

some point of time dream of owning a

home the first thing to keep in mind

would be if you will stay in a

particular place for a considerable time

or is there a high probability that you

will move out none of us know what the

future holds in for us but with

reasonable certainty we can estimate

that houses the highly illiquid assets

and a soul with great difficulty if such

a need arises

buying a home involves a huge sum of

money you should do thorough financial

planning the EMI you will be paying the

down payment you need to make etc is it

the financially right time to buy

whether you have sufficient savings or

you borrowing too much borrowing above

your limits means financial distress in

the future

and hence it is very important that one

sticks to a budget it's not just about

EMI or down payment but owning a house

involves a lot of other costs as well

there are maintenance costs utilities

property tax and home insurance consider

all these and then evaluate whether you

can afford a house at the present moment

or do you need to wait for it people

often do this mistake of using whatever

savings or investment they have into

buying a house retirement emergency or

child's education funds are there to

solve this specified purpose don't trade

these funds to buy a house separate

allocation must be made to buy a house

otherwise your whole financial planning

may go haywire

down payment should cover a significant

portion of total cost of the house going

by thumb rule it should be around 20%

lower down payment brings about a whole

lot of problems like longer duration of

mortgage payment higher monthly um eyes

and no major home equity if something

comes up and there is no proper

financial planning you may have to sell

a house you will receive very low amount

after taking care of all closing

expenses while applying for home loan if

you have a proper credit score you get

favorable credit terms like higher

amount and better negotiation terms

maintaining a proper credit score always

benefits a home buyer a higher credit

score can be obtained by repaying loans

in time avoiding excessive use of credit

prepaying loans with surplus funds also

check properly which bank provides a

better offer it is not necessary with

the bank which is tied up with the

broker will offer the best deal setting

a house budget is crucial in the home

buying process most financial advisors

say that people should not spend more

than 36% of their gross income on total

debt and not more than 28% of your gross

income should go towards a mortgage

payment when we buy a new house there is

this persistent feeling of getting new

furniture home appliances or even a new

car be careful with this familiar

tendency it may put serious pressure on

your finances just figure out what you

really need and then proceed with

careful financial planning while buying

a new house getting proper people of

Dunn is of utmost importance the broker

or dealer may try to trick you into

something that may cause you major agony

in future look carefully at all aspects

before making a final decision if there

is an offer of a 2 BHK at 40 lakhs while

normal market average is around 50 lakh

it is not necessarily the cheapest deal

it could be that the size of the flat is

much smaller

other aspects such as location of the

house its distance from the workplace

Supermarket hospital school Park and

other amenities should also be

considered essential amenities like

electricity and water supply should be

thoroughly checked before selecting the

project with this I come to the end of

this video until then goodbye