Tips For Buying an Apartment on a Single Income in Thrissur

Posted onOct 17, 2024

Purchasing an apartment is a lifelong aspiration for many. While buying a home on a single income may pose challenges, especially as the sole breadwinner with dependents, it is entirely achievable. Indeed, now is an opportune time to invest in property. According to current real estate market trends in Thrissur, prices are expected to increase shortly, making it wise to act swiftly and secure your investment..

What’s your Financial Situation?

Take stock of your finances - your savings, investments, monthly income, expenses, emergency fund, other loans and EMIs, and so on. This will give you a fair idea of the kind of property you can afford. Check your credit score to know your loan eligibility.

What is Your DTI?

Compare your monthly expenses (current EMIs, and loan payments) with your income. This will give you the debt-to-income ratio. The lower your DTI, the more attractive you are to lenders. Pay off current loans or increase your earnings to improve your DTI.

Make a Budget

Create a realistic budget where you keep a specific amount for different expense heads, like food, utilities, entertainment, children’s school fees, medical, and so on. A realistic budget is important, and it will give you an idea of the EMIs you can pay each month. This helps you decide how much loan you should apply for. Stick to your budget by tracking your expenses.

Get Pre-Approved

Look up financial institutions providing home loans and compare their services. Try to get pre-approved so that you have a clear idea of your options. Once you know the highest amount you can borrow, you can decide on the kind of apartment you want to purchase.

Apply for Housing Loans

Search for housing loans - there are many different products to choose from, with different features. Compare products to see which ones are most suitable for you. Check online reviews or ask friends and family if they have availed loans to determine which provider offers better service, rates, and processing fees. See if you qualify for government schemes which are more relaxed.

How Much Down Payment to Make?

We suggest making as big a payment a possible initially, so that you don’t need to apply for a huge loan. Of course, this amount should be decided on after checking your finances; you must have enough on hand to meet your obligations and essential expenses.

Include a Co-Buyer

It makes sense to jointly apply for a housing loan, as the combined credit score and available amount both can make it easier to purchase your desired property. The benefits of living in lifestyle apartments in Thrissur make purchasing those an attractive proposition, but they are in a higher cost bracket. Of course, it must be someone you trust immensely. Make a proper agreement detailing obligations, responsibilities and exit options for both of you.

Contingency Cash

Just because you’re buying a house doesn’t mean that your other expenses can be ignored. You still will need money for that; or you may have some problems in your business or job and your income source may reduce or pause. This can be very stressful and chaotic. It is essential that you have sufficient cash reserves to handle such emergencies should they arise. Create a nest egg from day one through monthly investments - consult a financial expert for this.

Conclusion

Thrissur is brimming with future opportunities for development, making it an astute choice to purchase an apartment here on a single income. You can indulge in a premium lifestyle with your family and also have the potential to generate a steady income by renting it out. Known for its reliability and stellar reputation across Kerala, Varma Homes has consistently delivered projects that comply with RERA norms and are equipped with top-notch amenities, ensuring a lifestyle that epitomizes comfort, convenience, and luxury.

FAQ

Can I afford to buy an apartment in Thrissur on a single income?

Absolutely! While managing a purchase on a single income requires careful planning, it's certainly achievable. Assess your financial situation, including savings, monthly income, and expenses. Keeping a low debt-to-income ratio and maintaining a good credit score will enhance your eligibility for favourable loan terms.

What should I consider when setting a budget for buying an apartment?

When setting a budget, it’s crucial to allocate funds realistically across different expense categories like food, utilities, and other essentials. Factor in your monthly income and existing debts to determine how much you can comfortably spend on mortgage payments. This planning will help you decide the loan amount to apply for and ensure you don’t stretch your finances too thin.

Are there benefits to including a co-buyer when purchasing an apartment in Thrissur?

Yes, teaming up with a co-buyer can be beneficial. Jointly applying for a housing loan can improve your borrowing capacity and possibly qualify you for better loan terms thanks to combined credit scores and incomes. However, it’s important to choose someone you trust and to have a clear agreement outlining each party's responsibilities and exit strategies.