How to Financially Prepare for Buying a Gated Community Apartment in Chennai?
Chennai is one of the fastest-growing cities in India, and with its growing economy, the city is attracting more and more people who settle here in one of the growing residential micro markets. One of the most popular housing options in Chennai are gated community apartments. According to a recent survey by leading management consulting firms, Redseer, the demand for Gated community apartments has been estimated to increase by 2.5x reaching $500 billion by 2026. The findings goes on to project that in the ensuing years about 24 million households would reside in gated communities in India. This huge demand for Gated community apartments in metropolitan cities like Chennai has been mainly driven by the factors such as better safety, more open space for physical activities, community living with a conducive environment for more social interaction and the availability of lifestyle amenities for better quality of living.
So, if you are looking out for housing options, Gated community apartments in Chennai from reputed developers in emerging parts of the city are a better, viable and more financially feasible option. A little financial planning and preparation will help you own your Gated community apartment with ease and easy management of the EMIs. Here are some pointers for it –
Decide your budget: Before you start looking for apartments, decide how much would be your investment. Take into account your current income, expenses, current loans and their monthly EMIs, the impending expenses if any like kid’s higher studies, marriages in the family, and so on. These factors have to be considered before arriving at the feasible investment amount. The requirements and expectation of the new house like the Locality, the number of bedrooms – 2 BHK/3 BHK/4 BHK, the amenities required, etc., all these have to be discussed with the family and an expected cost of the property can be arrived at. Both these figures together will help arrive at an approximate budget which would land you your dream home.
Save for the down payment: Availing a home loan is a prudent choice when it comes to mobilising funds for your house. This not only prevents you from draining your savings but also enforces financial discipline as you have to allocate funds for the EMI every month. Many Millennials and even Gen Z professionals become proud homeowners of Gated community apartments with the smart option of home loans as they are easy and the EMIs are well manageable. However, well ahead of availing your home loan, start to save for the down payment which generally is about 20% of the cost of the apartment.
Get Home loan PreApproval: Preapproval for home loan has many benefits (link to the blog about why PreApproval of home loan is necessary), it will give you an idea about the loan amount that you are eligible to considering your income, credit score and other factors. This will help you plan your house budget accordingly and prevents you from overshooting the eligible home loan. Availing home loan pre approval also projects you as a sincerely interested buyer to the real estate developer and makes you eligible for many offers and discounts from the developer. Check with different lenders to arrive at the most beneficial home loan with the best interest rate and repayment period.
Budget additional costs: When you buy a gated community apartment the obvious expenses include the property cost, registration charges, stamp charge, etc . However there are other expenses which are often overlooked, like the corpus fund, maintenance charges, cost of interior designing, property taxes, insurance, furnishing cost, and moving expenses. Make sure you factor these costs into your budget and this would give you an idea of the overall expenses.
Have a plan in Place: Home buying is a milestone achievement and a major financial decision. So, always have a solid plan as to how you would manage your Down Payment and EMIs. Start saving for your Downpayment well ahead of the plunge and have a strategy in place for paying your EMIs. This should include a budget, a savings plan, and a strategy for paying off any debts you may have. With a solid plan in place, you will be more confident that you are financially prepared to accomplish your dream of owning a Gated Community apartment.
New Gen Gated Community apartment in Chennai from a reputed developer is both a comfortable home for aspirational living and also a great investment that offers excellent scope of appreciation. Ponder on the above mentioned pointers and make sure you are financially prepared before you make this important investment.