TomorrowMakers

Along with boosting your investment portfolio, having a home of your own helps you secure your future.

5 Tips for women entrepreneurs who are interested in buying a house

Buying a home has long been considered a man’s domain. But with increasing financial independence and the emergence of female entrepreneurs, more and more women are breaking this stereotype and setting out to own property. With well-established careers, women have gained the confidence to buy property – but they still face challenges.

If you are a woman entrepreneur who is planning to buy a house, here are some tips that you will find useful.

1. Set a budget

Every house-hunting process starts with setting a budget. Since you will need to save a good amount of money to make a down payment, be sure to exercise financial discipline. To get a good credit score, clear any outstanding loans beforehand. Build your down payment by cost-cutting and avoiding wasteful expenses. You might also want to consider expanding your source of income. 

Start by analysing where your money goes. Categorise your expenses, determine how you spend, and then make a budget. This can help you cut down on discretionary expenses and save for your down payment. Start looking at houses on the lower end of your price range and work your way up. This way, you can call off the search at the lowest possible price point when you find what you’re looking for.

Related: Benefits of buying a property in a woman's name

2. Do your research thoroughly

Buying one’s own house is a dream cherished by many. But before you set out on your house hunt, ask yourself some basic questions. What kind of a house are you looking for? How big do you want it to be? What amenities do you desire – car park, swimming pool, club house? Are you looking for a home in the centre of the city or on the outskirts?

Reach out to friends and family for recommendations on specific neighbourhoods, talk to real estate agents for their insight, and ask locals for their perspective. When you put your hard-earned money on the line, it is important to ensure that your home buying process is safe and secure. Unscrupulous developers and agents are aplenty, so thoroughly examine their reputation and background before you decide.

3. Shop around for lenders

Choosing the right lender is as important as picking the right property. Make sure you do extensive research. You can compare home loans on third-party websites to shortlist your options. To encourage more women to borrow, many banks often offer concessional rates. You should also seek an expert’s opinion before applying for a home loan. Above all, don’t hesitate to negotiate! 

Be sure to educate yourself about the features of the loan – whether the rate is fixed or floating, if prepayment penalties apply, etc. Comparing all the aspects of a home loan package will give you an insight into the actual cost of borrowing. To make the loan application process quick and easy, keep relevant documents such as tax returns, bank statements, invoices, profit and loss statements, etc. at hand.

Related: How to plan the down payment on your first house

4. Account for other expenses

Besides the down payment, be prepared to shell out other out-of-pocket costs. Start by educating yourself about the fees and charges you may incur. For instance, stamp duty, registration cost, memorandum of title deed charges, interior decoration, etc. These costs make up a significant chunk of the total amount you will pay for your house. 

The process may also involve brokerage fees, legal fees, home insurance, etc. While it might be difficult to accurately factor in all the charges, having at least an estimate will enable you to plan a budget accordingly.

5. Government incentives and tax benefits

With a view to ease the home buying process for women, the government has enacted various women-centric schemes. One such initiative is the PMAY-CLSS scheme, under which banks offer special interest rates to women home buyers. This has led to a significant increase in the number of women applying for a home loan. 

To further encourage women buyers, the government is also offering a stamp duty concession on properties registered in their name. They can also avail of tax benefits. For instance, if they co-own a property with their spouse, a tax deduction can be claimed.

Related: How to financially plan for your first house

Last words

Buying a home is a huge investment. But with some research and planning, your home buying process can be seamless. It may involve making some sacrifices, but the joy of receiving the keys to your very own house will be well worth all the effort. What are the property rights in India for women?

Buying a home has long been considered a man’s domain. But with increasing financial independence and the emergence of female entrepreneurs, more and more women are breaking this stereotype and setting out to own property. With well-established careers, women have gained the confidence to buy property – but they still face challenges.

If you are a woman entrepreneur who is planning to buy a house, here are some tips that you will find useful.

1. Set a budget

Every house-hunting process starts with setting a budget. Since you will need to save a good amount of money to make a down payment, be sure to exercise financial discipline. To get a good credit score, clear any outstanding loans beforehand. Build your down payment by cost-cutting and avoiding wasteful expenses. You might also want to consider expanding your source of income. 

Start by analysing where your money goes. Categorise your expenses, determine how you spend, and then make a budget. This can help you cut down on discretionary expenses and save for your down payment. Start looking at houses on the lower end of your price range and work your way up. This way, you can call off the search at the lowest possible price point when you find what you’re looking for.

Related: Benefits of buying a property in a woman's name

2. Do your research thoroughly

Buying one’s own house is a dream cherished by many. But before you set out on your house hunt, ask yourself some basic questions. What kind of a house are you looking for? How big do you want it to be? What amenities do you desire – car park, swimming pool, club house? Are you looking for a home in the centre of the city or on the outskirts?

Reach out to friends and family for recommendations on specific neighbourhoods, talk to real estate agents for their insight, and ask locals for their perspective. When you put your hard-earned money on the line, it is important to ensure that your home buying process is safe and secure. Unscrupulous developers and agents are aplenty, so thoroughly examine their reputation and background before you decide.

3. Shop around for lenders

Choosing the right lender is as important as picking the right property. Make sure you do extensive research. You can compare home loans on third-party websites to shortlist your options. To encourage more women to borrow, many banks often offer concessional rates. You should also seek an expert’s opinion before applying for a home loan. Above all, don’t hesitate to negotiate! 

Be sure to educate yourself about the features of the loan – whether the rate is fixed or floating, if prepayment penalties apply, etc. Comparing all the aspects of a home loan package will give you an insight into the actual cost of borrowing. To make the loan application process quick and easy, keep relevant documents such as tax returns, bank statements, invoices, profit and loss statements, etc. at hand.

Related: How to plan the down payment on your first house

4. Account for other expenses

Besides the down payment, be prepared to shell out other out-of-pocket costs. Start by educating yourself about the fees and charges you may incur. For instance, stamp duty, registration cost, memorandum of title deed charges, interior decoration, etc. These costs make up a significant chunk of the total amount you will pay for your house. 

The process may also involve brokerage fees, legal fees, home insurance, etc. While it might be difficult to accurately factor in all the charges, having at least an estimate will enable you to plan a budget accordingly.

5. Government incentives and tax benefits

With a view to ease the home buying process for women, the government has enacted various women-centric schemes. One such initiative is the PMAY-CLSS scheme, under which banks offer special interest rates to women home buyers. This has led to a significant increase in the number of women applying for a home loan. 

To further encourage women buyers, the government is also offering a stamp duty concession on properties registered in their name. They can also avail of tax benefits. For instance, if they co-own a property with their spouse, a tax deduction can be claimed.

Related: How to financially plan for your first house

Last words

Buying a home is a huge investment. But with some research and planning, your home buying process can be seamless. It may involve making some sacrifices, but the joy of receiving the keys to your very own house will be well worth all the effort. What are the property rights in India for women?