Section 2 - Financial Planning 

Section 2 – Financial Planning for Buying Assets

Title: Smart Financial Planning Before You Buy a Home
SEO Keywords: Home loan planning, property investment tips, EMI calculator, budget for buying house, Hyderabad property finance

Intro

Buying a home is not just about choosing the right property — it’s about ensuring your finances are ready for the journey. Proper financial planning helps you avoid cash flow stress, manage EMIs comfortably, and enjoy your new home without financial strain. Here’s how to prepare your money before signing on the dotted line.

1. Assess Your Financial Health

Before applying for a loan or paying a booking amount:

• List your monthly income & expenses
  
  

• Identify ongoing EMIs (car loan, personal loan)
  
  

• Maintain an emergency fund covering 6–12 months of expenses
  
  

• Check your CIBIL score (750+ is ideal for better interest rates)
  
  

2. Plan Your Down Payment

• Most banks require 20–30% of the property value upfront.
  
  

• Start a dedicated savings plan 12–18 months before buying.
  
  

• Avoid using your entire savings — keep funds for emergencies.
  
  

💡 Pro Tip: A higher down payment reduces your loan amount and interest burden over time.

3. Account for Extra Costs

Apart from the base property price, plan for:

• Stamp Duty & Registration Fees (6–8% in Telangana)
  
  

• GST (5% for under-construction residential units)
  
  

• Maintenance deposits (Rs. 50–200 per sq. ft. depending on project)
  
  

• Interior work (Rs. 1,200–3,000 per sq. ft. depending on finish quality)
  
  

• Loan processing & legal fees
  
  

4. EMI & Affordability Planning

• Keep EMIs within 30–35% of monthly income
  
  

• Use an EMI calculator to check comfort level
  
  

• Factor in possible interest rate hikes for floating loans
  
  

• Plan for prepayment whenever you have extra income to reduce tenure
  
  

5. Maximise Tax Benefits

• Section 80C: Deduction up to ₹1.5 lakh/year on principal repayment
  
  

• Section 24(b): Deduction up to ₹2 lakh/year on interest repayment
  
  

• Joint Loans: Each co-borrower can claim separate tax benefits
  
  

6. Decide: End-Use vs. Investment

• End-Use Buyer: Prioritize location, amenities, and lifestyle.
  
  

• Investor: Focus on growth corridors (e.g., Kokapet, Tellapur, Narsingi), rental yield, and resale potential.
  
  

✅ Financial Readiness Checklist (Downloadable PDF suggestion)

1. CIBIL score checked
   
   

2. Emergency fund ready
   
   

3. Down payment saved
   
   

4. Extra costs accounted
   
   

5. EMI comfort confirmed
   
   

6. Tax benefits planned