For all those who are planning to buy a new house, this articles throws light on how hard can it be to deal with the First Home Deposit. Real Estate is not looking back since many decades now because of continuous development of the country as whole and especially metropolitan states, the prices of houses; flats and villas have risen considerably. Also the fact that for exiting house owners, the value of their property has also shot up making them richer by worth.
Hence everyone wants to buy a house of their own now and therefore it is essential to be aware of terms like First Home Deposits and Mortgage. In the beginning let us try to know what is the procedure to purchase a property anywhere in India. Talking of the capital city New Delhi; the rates here talk to clouds. A normal flat having area 1000 sq feet may cost more than 1 Cr INR! This amount may seem very nominal and pleasant to the politicians or to the rich class across the country, but if we look at it from a common man’s perspective; the amount is ENORMOUS and seems totally unreal!
Thus most of the builder companies and private builders have come up with various plans and offer schemes which loosen the payments for the average customers. An example can be the First Home Deposit. If you want to buy a new home, you have to first deposit a sum of money as a booking amount. The rest of the money can be paid in easy installments till the time the construction gets over and you can take your house over.
But again if we calculate the initial sum that one has to deposit with respect to the total amount i.e. 1 Cr, even it stands HUGE. It needs rigorous and regular savings for years to pay such a sum of money which can get real hard for a common middle class man.
Here comes the concept of “Housing loans” which become the biggest financial commitment ever for those who are first time buyers. There are public and private sector banks all over the country that are willing to offer loans for your housing dreams, but on applicable rates of Interest. If you wish to buy a house worth a crore, then the nominal interest calculated at a rate of 10 % per annum would stand to Rs. 10, 00, 000! So indirectly the total sum to be paid by the buyer would be 1.1 Cr.
Thus if we again consider the average salary of a common man and look at his dream of owning a house worth so much, it again looks unreal. So it is hard for a first time buyer to actually save for over years, take loans and repay them back with high interest rates, but in the end nothing feels better than owning a property on your own. This never ending desire keeps the fire alive in the belly of so many and they strive to work hard and harder to make more money and afford more expensive things in life.