Explore These Financing Options for Your Dream Villa Plot
The pandemic might have meant bad news for all sectors, but there is good news for home buyers. To boost the real estate sector, the RBI has announced a host of incentives that have translated to benefits for prospective homeowners.
The demand for NA plots is on the rise, and if you are thinking of owning a plot, now would be a good time. But before you buy land for investment in Pune, you need to plan its financing.
Cut Down on Debt
Banks and financial institutions don’t just look at your income; rather, they’re more interested in your debt-to-income ratio or simply your monthly debt obligations. Keep this ratio low to get the best rates on the market.
Be Wary of the Loan Amount
The loan-to-value ratio is 80%, which means that the bank will finance 80% of your bungalow plots in Pune. Bear in mind that you will finance the balance 20%, the down payment, with your savings.
You should preferably pay 40% of the loan amount to decrease your EMI burden.
Keep Your CIBIL Score High
A high CIBIL score is an indication of good credit history. A score over 750 fetches you higher loan amounts, faster loan approval, lower interest rates, and long repayment periods. Make sure to pay off all your previous loan EMIs on time to prevent your score from dipping.
Build an Emergency Fund
If you don’t pay your EMIs on time, the bank takes possession of your property. You can keep your end of the bargain by creating an emergency fund equal to EMIs for 3 to 6 months.
Budget Within Your Means
Stretching your budget to invest in plots for sale in Pune is a risky move – if you’re not careful, you’ll end up with a heavy financial burden on your shoulders.
Instead, calculate your cash flows before considering properties for sale in Pune. Determine your disposable income by taking stock of your regular monthly expenses and other financial goals like retirement.
Shop Online for Better Rates
You’re likely to find better rates by looking at numbers on the internet. Online portals host a wealth of information on the loan amount from different banks, interest rates, and repayment periods. Choose the bank that offers the best package.
Fund Your Dream Villa Plot Wisely
The first step towards owning your villa plot is planning your finances. Here are the basics of your financial plan:
- Keep your debt in check.
- Improve your CIBIL score.
- Make a higher down payment to lower your EMI.
- Create an emergency fund.
- Establish your budget.
- Research the best financing option.
Once you have sufficient cash flow, get in touch with Banyan Tree Realty for the best row houses in Pune. Located in Hinjewadi in Pune, the project landscape has is designed by international architects. Its convenient location and world-class amenities will give you superior returns in the long run.