Buy Home

Buy Your Dream Home

With rapid urbanization and increasing incomes, the demand for appropriate housing has begun to witness a steep rise. Favorable macro-economic factors and conducive demography have further aided this upsurge.

However, despite consistent upswing, things have not changed much for first-time home buyers. They still have to counter a variety of different difficulties, especially when it comes to arranging funds.

The Obstacles Of Finance

The grave financial obstacles that buyers have to face can be better understood with the help of an example. Consider that you want to buy a home which has a market price of INR 50 lakh. As per regulatory directions, lending institutions like banks can only sponsor about 80% of your total property value. This means that while a bank can sanction a loan amount of INR 40 lakh, you will have to arrange for the remaining 20% or INR 10 lakh, entirely on your own!

A bank will not release your home loan until you've paid your portion of the money first. Even if you are able to somehow make this downpayment, where do you find the funds to repay the loan from? How do you pay back both, the principal and the interest?

In order to deal with this predicament

  • If you decide to break into your savings, you end up compromising your future.
  • If you decide to take a personal loan, you end up being burdened by high-interest EMIs.
  • And if you decide to turn to your family & friends, you end up incurring great social debt.

Do you know what can prove to be the best way out of this imbroglio?

Buy a Mutual Fund

How Can A Mutual Fund Help?

As simple as it sounds, using mutual funds to buy a home can go a long way in helping you sort out your financial issues. Being professionally managed and highly diversified, mutual funds allow you to invest small amounts of money over long periods.

Suppose you start a monthly SIP for INR 10,000 towards a high-performing equity mutual fund. At a rate of 16%, this meager amount would transform into a huge corpus of approximately INR 9 lakh, within 5 years.

This simply means that if you'd invested in mutual funds earlier, the down payment of INR 10 lakh would have been well within your reach!

Mutual funds, in fact, don't just help you buy a home, they also enable you to:

  • Get good returns ranging from 10-18%.
  • Grow assets and create more wealth.
  • Cut long-term risk & avoid short-term volatility.
  • Get access to different kind of investments.
  • Avail the benefits of compounding & cost-averaging.

Whether you are using mutual funds to buy a home or you are employing mutual funds to repay the home loan - the earlier you start, the better! This is precisely the approach that we, at SRE, recommend you to follow.

Why Approach SRE?

Working tirelessly since the last 30 years, SRE has today carved a niche for itself in the financial planning industry. Our client-centric outlook and knowledge-based expertise, has turned us into leaders of advisory services. We primarily believe that every investment needs to be backed by a competent investment plan. Therefore, we focus on goal-based planning, which takes into account both, the investor's time horizon and risk appetite. Our team of certified financial planners conducts a thorough market research and helps you invest in mutual funds which have the potential of fulfilling all your objectives.

So, if you are planning to buy a home and are clueless about what to do - get in touch with us.