Own your dreams, don’t just rent it


Purchasing a house for you and your family is perhaps one of the most important financial milestones in life. It is a big investment and there are a lot of questions you need to answer in order to make the right decisions. Should you buy or build the house? Which area of the city is suitable? What’s your budget? There are many different aspects you need to consider before you make the decision.

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Here are a few tips to follow in order to create a responsible financial plan for owning a house.

1.Create a budget and stick to it

Buying a house may be the most expensive investment you make. As a result, you may want to ensure that you get the best possible property available. Additional facilities like gym, club house and swimming pools are attractive options. But they can also increase the overall cost of the property. If these options seem unnecessary, it is better to avoid them.

The first step in buying a home is to identify a realistic price range based on your current financial situation. After that, you should look for the best properties available in this price range.

2.Increase your savings

To fulfil a major financial goal like purchasing a house, you need to create a long term financial plan. And for this, you may have to change a few spending habits without compromising on your current lifestyle.

Identify your monthly income, expenses and savings. How much of your income is used for impulsive/unnecessary expenses? By curbing these expenses, you can maximise your savings. You can also consider finding additional earning sources to boost your overall income.

3.Invest appropriately

Increasing your savings is important but to reach your goal of owning a house in the fastest and most comfortable manner, you need to invest your money. This allows your money to grow at a faster rate. A savings account, for example, offers modest returns of 3-4% per annum. In comparison, when you invest in equity mutual funds, you can earn anywhere between 10-15% (sometimes even higher) per annum. This can help you save a much larger amount in a lesser period of time.

4.Be financially prepared for the down payment

Buying a house through a home loan is probably the most viable option for most people. But even when you take a home loan, there is a down payment to be made. This is generally around 20% of the total cost. You can save for this amount by investing in mutual funds through Systematic Investment Plans (SIPs). For example, by investing Rs 5,000 per month in an SIP, you can earn a corpus of Rs 38 lakh in 20 years; assuming that you earn a standard return of 10% per annum.


Purchasing a house is a major life goal. There are a lot of different aspects to consider. That’s why, it is very important to make the process as well-planned as possible. Through proper financial planning, it is possible to make your dream of owning a house a reality!