{"id":8768,"date":"2022-11-28T13:22:06","date_gmt":"2022-11-28T13:22:06","guid":{"rendered":"https:\/\/www.homebazaar.com\/knowledge\/?p=8768"},"modified":"2025-01-07T09:49:38","modified_gmt":"2025-01-07T09:49:38","slug":"setup-budget-for-buying-an-under-construction-property","status":"publish","type":"post","link":"https:\/\/www.homebazaar.com\/knowledge\/setup-budget-for-buying-an-under-construction-property\/","title":{"rendered":"How To Setup Right Budget For Buying An Under-Construction Property"},"content":{"rendered":"
Setting a budget can appear to be an overwhelming process as buying a home is usually the greatest purchase choice a person will make in their lifetime. There are so many factors to consider, including location, configuration, home loan criteria, rate of interest, down payment, pre-EMIs and more. Here is a budgeting guide to help you while setting up the right budget for Buying an Under-Construction Property.<\/strong><\/em><\/h6>\n

\u00a0<\/b>Evaluate Your Finances<\/b><\/h2>\n

When you plan to purchase a real estate property first thing you need to evaluate is your finances. This is the initial step while setting up the budget for buying an Under construction property.<\/span><\/p>\n

\"\u00a0Evaluate<\/p>\n

Your Income Sources<\/b><\/h3>\n

Property purchase means a big financial commitment. You need to understand all your current income sources to evaluate your finances.\u00a0<\/span><\/p>\n

Check your take-home income, if you are married and your spouse is also earning member then combine both incomes to understand financial strength.\u00a0<\/span><\/em><\/p>\n

This will help you figure out how much funds you already have.<\/span><\/p>\n

Your Debts and Liabilities<\/b><\/h3>\n

The next thing you need to check is your current debt and liabilities like car loans, credit card debts, income taxes etc.<\/strong><\/span><\/p>\n

This understanding will give a clear picture of how much money is in your account to go ahead with the property purchase.<\/span><\/p>\n

Future & Future Income Sources<\/b><\/h3>\n

Future responsibilities should be considered when you plan a budget for buying a property.\u00a0<\/span><\/p>\n

For example, if you are planning to get married or have kids in future. These responsibilities can put a financial strain.<\/span><\/p>\n

Also, while planning your budget for buying an under-construction property you should also check for future income sources.\u00a0<\/span><\/p>\n

The possession of under-construction property can take 3-5 Years approximately, so you will have enough time to save money.<\/strong><\/p>\n

If you have money invested in mutual funds, stocks or any other sources of income can help you in future in property finance management.<\/span><\/p>\n

Emergency Fund<\/b><\/h3>\n

Emergency Funds are protection that can be utilised to cover additional expenses which helps to increase financial security.\u00a0<\/span><\/p>\n

You can use your emergency funds if you are short on cash for property purchases.<\/span><\/p>\n

This emergency money can be income tax refunds or any other scheme to save money.<\/strong><\/p>\n

Investments<\/b><\/h3>\n

There are numerous investment options available such as equity mutual funds, government bonds, unit insurance plans, post office monthly income schemes etc.<\/em><\/span><\/p>\n

You can utilize your investments to set up a budget to purchase a property.<\/span><\/p>\n

Know Your Property Requirements<\/b><\/h2>\n

Understanding your needs for the home is one of the key considerations when making plans to purchase real estate.<\/span><\/p>\n

\"Know<\/p>\n

What <\/b>Type of Property<\/b> Do You Need?<\/b><\/h3>\n

Now you have decided to purchase a property but still, but there is a question of what type of property you need.<\/span><\/p>\n

An apartment, a bungalow, or a row house whichever fits your requirement. This totally depends on your use, number of family members and financial condition.<\/span><\/p>\n

In a city like Mumbai average apartment can cost up to Rs. 17,000- 20,000 per sq ft and an independent bungalow can cost up to approximately Rs. 1.15 – 4 Cr.<\/strong><\/p>\n

What Is Your <\/b>Property Size Requirement<\/b>?<\/b><\/h3>\n

Your budget and your family’s needs are two factors to take into account while selecting the ideal size of the apartment.<\/span><\/p>\n

You should be considerate about the number of family members who will be living in the house also going over the top can put a lot of financial burden on your family.<\/span><\/p>\n

Look for various localities with different projects which will fit your requirement.\u00a0<\/span><\/p>\n

What <\/b>Configuration<\/b> You Are Looking For?<\/b>\u00a0<\/span><\/h3>\n

After figuring out the property type and property size requirement you will have to decide on configuration requirements.<\/span><\/p>\n

The average area in 1 BHK, 2 BHK and 3 BHK configurations can be different for every project.\u00a0<\/span><\/p>\n

Here is the average price in the Mumbai locality for each configuration.\u00a0<\/span><\/p>\n\n\n\n\n\n
1BHK<\/span><\/td>\nRs 60L – 1.5 Cr<\/span><\/td>\n<\/tr>\n
2BHK\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/td>\nRs 90L – 2.5 Cr<\/span><\/td>\n<\/tr>\n
3BHK\u00a0\u00a0\u00a0<\/span><\/td>\nRs 1.7Cr – 4 Cr<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

What <\/b>Amenities<\/b> Are Required?<\/b><\/h3>\n

In today’s mostly every developer is trying to offer different kinds of amenities in the project. From a mini theatre to a swimming pool and gym facility.\u00a0<\/span><\/p>\n

While deciding on the project you must check which amenities are available in the project and what is your requirement.<\/span><\/p>\n

For example, a clubhouse with a creche, swimming pool etc. can add up to the cost of maintenance.\u00a0<\/span><\/p>\n

What <\/b>Facilities <\/b>Are Required?<\/b><\/h3>\n

It is typical to hear stories about people receiving poor deals on homes. Facilities provided in the project also affect the property value.\u00a0<\/span><\/p>\n

When you decide on a property purchase list out the facilities which you will need.<\/span><\/p>\n

Apart from luxurious facilities, there are a few essential amenities you should look for,\u00a0<\/span><\/p>\n