HOW TO BUDGET FOR YOUR FIRST HOME IN AHMEDABAD

How to Budget for Your First Home in Ahmedabad

How to Budget for Your First Home in Ahmedabad

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Buying your first home in Ahmedabad is an exciting milestone and a significant financial decision that requires careful planning. The city's real estate market is thriving, offering a wide range of options, from budget-friendly apartments to premium villas and gated communities. With its expanding infrastructure, growing job opportunities, and increasing property appreciation, Ahmedabad has become a prime location for homebuyers.

However, without a well-structured budget, buyers may face financial strain due to hidden costs, high loan repayments, and unexpected expenses. To ensure a smooth and stress-free home-buying experience, it is essential to plan your finances wisely, understand market trends, and evaluate all associated costs before making a purchase.

1. Understand Ahmedabad’s Real Estate Market


✔ Property prices vary by locality:

  • Affordable Areas (₹30-60 lakh): Chandkheda, Naroda, Vastral, New Ranip, Vatva

  • Mid-Range (₹60 lakh – ₹1.5 crore): Gota, South Bopal, Thaltej, Science City, Shela

  • Luxury (₹1.5 crore+): Bodakdev, SG Highway, Sindhu Bhavan Road, Ambli, Shilaj


2. Assess Your Financial Readiness


✔ Calculate your income, savings, and liabilities before deciding on a budget.
 ✔ Maintain a credit score of 750+ for better loan approval and lower interest rates.
 ✔ Follow the 28/36 rule:

  • Home loan EMI should not exceed 28% of your monthly income.

  • Total debt payments (including other loans) should not exceed 36% of your monthly income.


3. Determine Your Home Loan Eligibility


✔ Banks typically offer 80-90% loan-to-value (LTV), so arrange 10-20% as a down payment.
 ✔ Example: If you earn ₹1 lakh per month, you may qualify for:

  • Loan Amount: ₹70-80 lakh

  • EMI: ₹55,000-60,000

  • Down Payment: ₹15-20 lakh


4. Save for Down Payment & Other Costs


✔ Start saving early using fixed deposits (FDs), mutual funds, or SIPs.
 ✔ Reduce unnecessary expenses to boost savings.
 ✔ Utilize bonuses & windfalls to reach your goal faster.

5. Choose the Right Home Loan


✔ Compare interest rates (fixed vs. floating).
 ✔ Check processing fees & prepayment charges.
 ✔ Explore PMAY subsidies for first-time buyers.
 ✔ Top banks offering home loans: SBI, HDFC, ICICI, Axis, Kotak Mahindra.

6. Plan for Future Expenses & Financial Security


✔ Maintain 6-12 months’ worth of emergency savings.
 ✔ Get home insurance to protect against theft or natural disasters.
 ✔ Ensure EMIs don’t interfere with long-term financial goals like retirement planning.

Make a Smart Investment


Budgeting wisely ensures a smooth home-buying experience without financial stress.

Need expert guidance? Contact Around Town Realty for personalized property recommendations and financial planning!

 

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