Important Down Payment Saving Tips for Renters

For renters who wish to purchase homes, one of the main issues is whether to save for down payment. This may seem like a mammoth task, but if you plan well, then you can do your research and break it down into easy steps to follow.

It is necessary to determine how much exactly you are trying to save before you start saving. For most situations, it is prudent to find 15 percent of the home down payment (though it can range from 5 percent to 20 percent). Then you have the following important questions to answer. How long should I save for down payment? How long will it take me to save for that down payment? Where is the best place to invest my money in to save for the down payment?

Where is the best place to invest my money for down payment savings? By opening a high yield savings account, you could save on that. It would be better to set up an automatic transfer process so that every month money for your home savings is deducted from your salary account. It's always a smart idea to create a savings fund for yourself right out of the start, in your early years as a student. High return on investments such as bonds will provide an avenue for savings. You can also take out a loan against a life insurance policy to raise the funds required.

If you have a good sense of how much you intend to save, make sure to cut back on your spending. You should apply the following recommendations to this end- That special day you may like to spend at home. Save by spending less on clothes, Save by deferring that expensive holiday destination to which you would like to go and search for budget or backpacking options, both fun experiences. Cut back on buying meals online and consuming wholesome home-made food, which is also safer, prioritize your future home over other expenses like phones, cars, etc.

Think for a bit contemplating your retirement savings. This may seem a bit risky but anyway, when you come to think about it, a home is an investment for your retirement. If you want to speed up to your home down payment goal, making sure you don't have any other savings goals is wiser. And pausing your retirement savings for a couple of years would let you make sure you can save more on the down payment.

Tax preparation is a very critical step in your path through home down payments. There are several tax deductions that you can take advantage of under 80 C and 80 D and, if you use them correctly, can help you get some tax cuts. You will also guarantee that your tax-savings program complements your financial strategy.

Government-backed subsidies such as Pradhan Mantri Awas Yojana for home loans are also a great benefit to homebuyers, so it is also necessary to do your homework in this regard. Under the scheme, the government will provide a 3 percent to 4.5 percent interest subsidy on the amount of home loan depending on the income group to which one belongs. In every state, there are also housing assistance programs through which people in the lower and middle-income brackets can claim assistance. So make sure to scour your options as you intend.

Home down payment assistance programs is a boon to homebuyers. This is something that will be taken to by professionals and young homebuyers especially if they are digital solutions. HomeCapital is the first home down payment assistance program in India. The program helps first-time homeowners with an interest-free unsecured loan of up to 50 percent of down payment. The HomeCapital Program helps to track homeownership more quickly.