Ways to Fund Your Down Payment for Real Estate

New Flats in Ghatikia Bhubaneswar

Investing in a home is a significant milestone, but securing a down payment is often the biggest challenge. If you’re considering buying new flats in Ghatikia Bhubaneswar, understanding the various funding options can help you achieve your homeownership dream faster. Whether you’re a first-time buyer or upgrading your living space, here are some effective ways to fund your down payment.

1) Systematic Savings Plan –

Initiating a disciplined savings regimen is foundational. Here’s how you can bolster your savings:

  • Budgeting: Track monthly expenses to identify and curtail unnecessary spending.
  • Automated Transfers: Set up automatic transfers to a dedicated savings account to ensure consistency.
  • High-Yield Accounts: Utilize savings accounts offering higher interest rates to maximize growth.

2) Liquidating Assets or Investments –

If you have existing assets, selling them can be a great way to arrange funds. Consider liquidating:

  • Gold, Jewellery, and Other Valuables: Selling or pledging gold can provide instant liquidity.
  • Old Property or Unused Land: If you own property that you no longer need, selling it can help fund a new purchase.

3) Leveraging Investments –

Tapping into existing investments can expedite your savings:

  • Fixed Deposits or Mutual Funds: If you have investments, selling a portion of it or redeeming these can offer immediate funds.
  • Provident Fund (PF): Under certain conditions, partial withdrawals from your PF are permissible for housing purposes.

4) Employer-Assisted Home Loans –

Some companies offer housing loan benefits to their employees. 

  • Employee Loans: These often come with favourable terms and can be repaid over extended periods.
  • Housing Allowances: Check if your employer provides any home-buying assistance, as this could be a valuable funding source.

5) Exploring Loan Options for First-Time Buyers –

First-time homebuyers have access to various loan schemes like:

  • Government-Backed Loans: Schemes like the Pradhan Mantri Awas Yojana (PMAY) offer subsidies on interest rates, reducing the financial burden.
  • Low Down Payment Loans: Certain financial institutions provide loans requiring minimal down payments, making homeownership more accessible.

6) Builder Financing Schemes –

Developers like Motwani Constructions often introduce attractive payment plans:

  • Subvention Schemes: It is a tripartite legal agreement made between the buyer, builder, and the financial institution providing the home loan. In a subvention scheme, the buyer doesn’t have to pay any amount in the form of interest until an agreed period, which is mentioned under the contract terms. This helps in reducing immediate financial outflow.
  • Flexible Payment Plans: Staggered payment structures aligned with construction milestones can ease cash flow management.

7) Utilizing Tax Benefits –

The Indian government offers tax incentives to homeowners:

  • Section 80C: Under this section of the Income Tax Act, a tax deduction of up to Rs.1.5 lakh can be availed per financial year on the principal amount repaid towards your home loan. Additionally, this deduction also applies to registration and stamp duty charges for your property. 
  • Section 24(b): It allows deductions up to Rs.2 lakh on interest payments of your home loan for self-occupied properties.
  • Section 80EE: This law allows first-time home buyers to get tax deductions on the interest they need to pay on a home loan. You can claim a deduction of up to ₹50,000 per financial year as per this section. Also, you can continue to claim this deduction until you have fully repaid the loan.
  • Section 80EEA: Introduced in the 2019 Union Budget, this section provides first-time homebuyers in India with extended tax benefits. It allows individuals to deduct up to Rs.1.5 lakhs from their home loan interest when purchasing a residential property. The benefit is in addition to the existing Rs.2 lakh tax deduction under Section 24 of the Income Tax Act. Moreover, a deduction can be claimed over and above the benefits available under Section 80C of the Income Tax Act, 1961, offering substantial tax relief for eligible homebuyers.

8) Consider Co-Buying a Property –

  • If managing a down payment alone seems challenging, co-buying a home with a family member or a friend can be a viable option. This reduces the financial burden on an individual and increases loan eligibility.
  • Many people investing in flats under 1.5 Cr in Bhubaneswar explore co-buying options to afford premium properties.

How can I save for a real estate down payment?

Saving for a down payment requires discipline and a solid financial plan. Here are some effective ways to build your savings:

  • Set Up a Dedicated Savings Account: Open a high-yield savings account specifically for your down payment to prevent unnecessary spending.
  • Automate Savings: Allocate a fixed portion of your income to your down payment savings every month.
  • Cut Unnecessary Expenses: Reduce discretionary spending like dining out and entertainment to boost savings.
  • Invest Wisely: Consider low-risk investments such as fixed deposits or mutual funds to grow your savings over time.

If you’re looking at flats in Ghatikia Bhubaneswar for sale, setting a savings goal based on current property rates will help you reach your target efficiently.

Are there loan options available for first-time buyers?

Yes, multiple loan programs exist to assist first-time homebuyers in securing a down payment. Some of the most popular options include:

  • Home Loans with Low Down Payment: Many banks and NBFCs in India offer home loans with a down payment requirement as low as 10-20% of the property value.
  • Government-Backed Loans: Schemes like Pradhan Mantri Awas Yojana (PMAY) provide subsidies for eligible buyers, reducing the overall financial burden.
  • Loan Against Fixed Deposits or Insurance Policies: If you have existing savings in fixed deposits or life insurance, you can leverage them to get a loan.
  • Personal Loans: Though interest rates are higher, personal loans can be a quick solution for arranging funds for a down payment.

For those considering our project in Ghatikia, exploring these financing options can help make homeownership more accessible.

Spotlight on Ghatikia, Bhubaneswar-

Ghatikia has emerged as a sought-after residential area in Bhubaneswar. Developers like Motwani Constructions have recognized this potential, offering new flats in Ghatikia Bhubaneswar with modern amenities and strategic location advantages. Notably, our project in Ghatikia has options for flats under 1.5 Cr in Bhubaneswar, catering to a broad spectrum of buyers.

Buying a home, especially in an emerging real estate hub like Ghatikia Bhubaneswar, requires careful financial planning. Whether you choose to save, apply for loans, seek family assistance, or explore investment options, a well-thought-out strategy will help you secure your dream home efficiently. 

Motwani Constructions offers various housing projects tailored to different budgets, including flats under 1.5 Cr in Bhubaneswar. 

If you’re looking for new flats in Ghatikia Bhubaneswar, start planning your down payment today to secure your dream home and take the first step towards homeownership!

FAQs on Ways to Fund Your Down Payment for Real Estate

  1. What is the minimum down payment required to buy a flat in Ghatikia, Bhubaneswar?
    The minimum down payment typically ranges from 10% to 20% of the property’s value, depending on the loan provider.
  1. Can I get a loan for the entire property value?
    Most banks and NBFCs require a down payment, but some special schemes offer loans covering up to 90% of the property cost.
  1. How can I check my eligibility for a home loan?
    Eligibility depends on factors like income, credit score, and employment status. Consult your bank or financial institution for details.
  1. Are there tax benefits for first-time homebuyers?
    Yes, tax deductions are available under Section 80C and Section 24(b) for home loan repayments and interest payments.
  1. What are the best real estate projects in Ghatikia Bhubaneswar?
    Motwani Constructions offers premium flats in Ghatikia Bhubaneswar for sale and housing projects, including flats under 1.5 Cr in Bhubaneswar with modern amenities and competitive pricing.
motwaniconstr156 e1739608922618 1