If you are up to saving money on home buying, be well aware of certain facts. Purchase a house only if you are sure enough to live there for several years. Or else, it can be expensive for you. Purchasing home and then selling them with a profit requires good understanding of the real estate market trends. So, take up the idea of purchasing property only if you are well aware of the ups and downs of the market trends.
In case you are interested in buying home to stay, the following tips would help you to great extent.
Fix the amount of money that you would want to invest for real estate. To determine the amount the thumb rule is two-and-one-half times your annual salary. You may use better tools to calculate the amount for investment keeping in mind the income, debts, and expenses.
Rehearse well on how you would negotiate to get the best deal for real estate buying. The deal should be based on the sales trend of similar homes in the area. Check out the sales prices of the houses of the last three months.
Though Internet is a good guide for you to get all the listings and the current rates of real estate buying, but engaging a professional agent would definitely make your work lot easier. He would help you in the bidding process for the best possible real estate deal. If you find that the price of the recently sold homes is 5% less than the asking price, you bid for 8 to 10% lower than the price quoted by the seller.
To save money, you may go for home loans. A home loan would help you to get a home of your own and pay for it in reasonable installments. Home loans come along with huge tax concessions. Compared to other forms of loans the home loans would help you to evade tax payments to great extent. Lets see how.
You would get tax deduction amount on the repayment of the principal amount of the loan that is granted to you for purchasing a house.
The rate of interest paid on the loan is deductible from ‘income from property’, even if the amount is not paid during the year.
Even the interest paid for a fresh loan which is taken to repay the old loan is also deductible.