Why Purchasing A Home Shouldn’t Be A Last-Minute Resolution

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At the start of each year, millions of people make New Year’s resolutions. A series of scientific investigations into something referred to as the “fresh start effect” have sought to understand how temporal landmarks can spur on actions towards achieving goals.


As we enter a new year, many people aim to kickstart their lives with resolutions. These can be ambitious targets that could be too difficult to reach – however, they also give those brave enough to take them on an opportunity to practice self-discipline, tenacity and creativity.


When it comes to New Year’s resolutions, opinions are divided as to their efficacy. A research study revealed that only a mere 12% of those who had set resolutions felt they were successful in achieving them. Some of the common new year resolutions include Achieving healthier goals, replacing unhealthy foods with nutritious options, engaging in physical activity on a consistent basis, making wiser financial decisions, Breaking the habit of smoking. In order to make better financial decisions, people opt for real estate investment at the last minute as their resolution. Is that right? Definitely not! In this blog we will guide you through some of the important steps to make your new year resolution profitable.

Personal Finances

When it comes to buying a house, one of your first steps is to determine your spending limit. It’s not advisable to allocate more than 30% of your take-home salary for mortgages and other loans. Therefore, you should analyses how much of that income you can actually spend on a home. Additionally, consider how much savings you have available and whether there are potential additional sources of income which could contribute to this purchase each month.


  • It is important to remember that you should never purchase a house beyond your financial constraints.
  • Many individuals make the mistake of buying a residence with the intention of selling it and obtaining profits after settling their mortgage debt.
  • Unfortunately, this is an incredibly risky move as there is always the chance that the housing market could collapse.
  •  It is wise to buy a home within your current budget rather than one you believe you can afford in future times.


Furthermore, purchasing a property out of your price range will lead to financial problems for many months until it can be sold off and may leave you without enough money for day-to-day life or even worse, unable to cope with any emergencies which may arise.


Secondary Job Or Passive Income

Passive income could be a handy option in buying real-estate if you had invested in stocks or other market related digital assets 5-6 years prior to your investment time. By investing in stocks, you are essentially buying parts of a company. As the value goes up, dividends will be paid out to shareholders at regular intervals. The amount earned depends on the total number of shares owned – the greater the number, the more profitable it is likely to be.


Investing in stocks can be a daunting prospect, as there is always a risk involved. However, with the right strategy and diversified portfolio, it can be an effective way to generate passive income gradually. By taking necessary precautions, seeking guidance from experts, you can take advantage of the advantages of being invested in the stock market.


  • How much money do you need to invest? – Prior to investing in the stock market, you’ll be required to carry out research in order to select the right stocks. Additionally, it will require an initial monetary contribution.
  • Do you want to build long-term wealth? Investing in shares that pay dividends is a great way to maximize your earnings. Profitable stocks will ensure the highest return on your investment, which can be beneficial over time.
  • It is important to be aware of the risks that come along with allowing a stranger to stay in your home. Despite having minimal financial consequences, caution must always be exercised when inviting strangers to provide stock advice.



For those seeking to set aside money for investments, the earlier they begin, the more beneficial it is. Starting to invest during one’s 20s will take full advantage of compounding, creating a sizable amount of funds by the time home purchase is being considered. This could lead to a larger down payment, thereby minimizing Home Loan load.


Investing in systematic investment plans (SIPs) is a great way to save up money and gain financial stability in no time. In just 5 years, you can amass Rs. 12.40 lakhs by investing Rs. 15,000 a month through SIPs – all with an average return of 12%.


Are you and your family eligible for the Pradhan Mantri Awas Yojna? This program, which is essentially a credit linked subsidy scheme, offers a subsidy on home loan interest payments to Indian citizens who don’t own a property in the country.


The Indian Government has announced a subsidy of 6.5%* for Home Loans up to Rs. 6 lakhs, available to those with an annual household income not exceeding Rs.6 lakhs. Individuals earning up to Rs 12 lakh per year can receive a 4% subsidy on loan amounts ranging from Rs. 6 – 9 lakhs, while those earning up to 18 lakhs annually are eligible for a 3% subsidy on loan amounts of up to Rs 12 lakhs.


Expenditure Cost

You should be aware of the hidden expenditure that occurs while buying a home. Assume your planned cost is 60 lakhs, it could go up to 70 lakhs. The following are some of the additional expenditures to be planned before buying a house.

  • Stamp Duty

When buying a house, you may be required to pay stamp duty that varies in percentage from 4% to 7% of its total value. For example, should you purchase a property valued at Rs 50 lakh, you would need to pay an additional fee of between Rs 2 lakh and Rs 3.5 lakh as part of your stamp duty charges. This can significantly increase your overall costs.


  • Registration Fees

When it comes to registering a home, most states require a fee of 1% of the value of the property. For example, a house worth Rs 50 lakh will come with an additional charge of Rs 50,000 on top of the stamp duty that requires payment.


  • Pre-Maintenance Cost

Maintenance costs are an essential factor to consider when buying a house. Depending upon the size and location of the building, builders may request such charges in advance, which could be as high as multiple lakhs. This fee needs to be taken into account when budgeting for a new home.



No one should feel any pressure to buy a house before they reach the age of 35 – or ever. Purchasing real estate is an enormous commitment and although it could be viewed as a solid financial move, it does not suit everyone’s needs. Timing, the current housing market, rates of interest and any upcoming plans must all be taken into consideration. For some people, having more freedom or mobility may be higher on their priority list while others want to keep their career or family options open.


  • Though economic expansion can bring hope to employers, there is still a great weight of uncertainty in regards to job security.
  • Knowing this, potential homeowners should be sure that their employment is secure before making any kind of major financial commitment such as taking out a mortgage.
  • There could be nothing worse than investing in a home only to find yourself unemployed shortly afterward.
  • Therefore, it is essential to make certain your job position is safe prior to finalizing any sort of 30-year agreement with mortgage payments.



Real estate prices in many cities have risen to astonishing heights, making it necessary for most people to go beyond their limits in order to afford their dream home. Unless you happen to come into a large sum of money, taking out a loan is your best bet. Of course, such loans come with interest rates which are usually much greater than that of principal amount, resulting in an EMI that takes up a majority of one’s salary every month. The following are some of the investment options that can help you while buying a home:


  • Gold
  • Fixed Deposits
  • Stocks
  • Flexi Cap Mutual Funds
  • Large Cap Mutual Funds
  • Mid Cap Mutual Funds
  • Guaranteed Savings Plans


Market Research

  • Prior to making a purchase of a house in 2023, it is essential that one takes the time to research housing market predictions for 2021 and 2022.
  • This will help to ensure that an informed decision is made by studying real estate forecasts of the desired city or locality.
  •  By keeping up with these reports, it’s possible to determine which localities are highly sought-after due to infrastructural changes or any other factors, as well as those seeing a downturn in demand.
  • In response to the economic disruption brought about by the pandemic, the government has sought ways that will bolster spending and investments.
  • One of these strategies is reducing interest rates particularly for home loans.
  • It is clear that there was a substantial decrease in interest rates from the previous year to last year – more than 2%!
  • Although this percentage appears small, it makes a significant amount of difference for those who are obtaining large loans from banks.


Local Indicators

Though it may be disheartening, one of the main elements to consider when purchasing a house is an element outside of your control – the local market. Basically, you might not have any choices whatsoever. It could be that there are no residences in your budget or location accessible in the district you want. Moreover, certain market conditions may make owning unviable even though it has become more economical to own than rent in some markets. Consequently, while interest rates should still be taken into account, it is just important to find the ideal market for ownership.

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