Buying your first home? Planning, saving, sacrifices and a little love is all you need!

Image: decor-ideas.com

You started small in life. Your dad did not have the money to send you abroad for that fancy degree and you never had the luck to get into the IIT. But you worked hard and enjoyed life as it came. From the road side tea shops on month ends to cheap pubs when the salary hit the account. (Ah the good old days!)

Somewhere along the road, a woman happened and you fell in love and decided to tie the knot. Now both of you work, live in a small rented place and have time out on weekends to do your stuff. But the thought of owning your own dream home is constantly on your minds. Most often, once you have settled into bed after a hearty meal, she asks you that question is dreamy sort of way. We have been there, (still doing) done that, friends! So here is what we say:
1) Choose your locality. Get your mind made up on that, jointly.

2) Get yourself a budget. This is an easy bit. Add up the net income that is coming home every month. Say you guys are jointly raking in about 80 grand. Set aside an EMI budget of 40% (max) of the income. That makes it 32 grand a month. As a thumb rule you are good to go with a 32 lac bank finance. Note that banks will finance only 80% of the property value and no more these days. So you have a budget of 40 lacs, all inclusive to start house hunting. That is the planning bit.

3) Now, make sure you have the remaining 8 lacs saved up between the two of you. Add to that a couple of lacs more for registration and documentation plus whatever amount you need to furnish your dream home with and put in the nick knacks! If you do not have that up front money to start with, shelve the idea and start saving. Give that expensive Tag you have been wanting to pick up a pass. Cut down on holidays and in a couple of years, you will have that money in the bank. That is the saving and sacrificing bit.

4) While you are in the process to build your funds through point number 2, there will be freak shopping sprees, a friend in dire need, the mom in law coming over for an extended visit and the angry boss breathing down your neck. Keeping your calm, respect for one another and lots of love (making) will erase the pains of the planning years. That is the love bit. (Most critical we think).

The coffee is brewed now. Call the broker, finalise your dream home, sign out that cheque for your own contribution of 20%, watch the home loan kick in and jump with joy. Real estate buying, simplified. QED.
And yeah, do send us some pictures. We would be glad to see them. As for us, we are all, mostly in the Planning bit right now. With some love thrown in!
Cheers to that!