Buying a house in today’s market is one of the most significant investments you will make in your lifetime. Hence, if you are planning to buy a house, you should consider making significant early investments.
The process of buying a house is stressful. So, it becomes essential to have a structured plan to fulfil your dream. The first and foremost step that you need to take is to learn how to invest your money wisely for funds needed to buy your dream house.
Why to invest?
When it comes to buying a house in Mumbai, South Mumbai is seen as an epitome of luxury living by many. Due to its strategic geographic location, the neighbourhoods of South Mumbai are enticing for many buyers. Thus, demand for apartments in South Mumbai is high, as these are seen more as status symbols than just regular apartments.
The base price of a 1 BHK apartment in South Mumbai, depending on the locality and type of construction, is approximately Rs. 2 crore to Rs. 4 crore. So, with such a significant investment goal, there is nothing wrong in seeking advice regarding financial planning to buy a house.
If you are looking to make your wealth grow by investing, there are many options to choose from – stock, mutual funds, debt instruments and fixed deposits, to name a few. You should determine your risk appetite and investment horizon and accordingly finalise where to invest.
Begin your investment journey to buy your dream home
Since buying an apartment is a long-term goal, it requires a considerable amount money, which can be achieved by investing early. For a salaried person, it is rarely easy to buy a house costing over Rs. 1 crore. Many usually resort to borrowing, through individuals or financial institutions, to purchase their dream home.
One way to do away with the stress of repaying such loans is to make use of mutual fund investments to fulfil your objective to buy a property or a house. If you plan to buy a house in 10 years or less, investing in the stock market could be a wise choice.
Be consistent with your savings
Saving for a down payment on a house is indeed challenging. Thus, one must be consistent with their saving habits.
If you choose to invest in a mutual fund, it is essential to go frugal and stick to it and invest a specific amount every month. If you are willing to do this, look out for stocks to buy today. Therefore, while buying a house, you can consider investing in mutual funds through systematic investment plans (SIPs)—a good choice because of its following benefits:
- Investing in suitable funds and categories at the right time is extremely crucial
- SIPs in a mutual fund are a flexible form of investment
- You can fulfil long-term goals such as buying a house through the power of compounding on SIPs
If you are entirely new to mutual funds, it is prudent to reach out to a financial advisor to help you out with smart investment decisions. Reach out to one today and get started on growing wealth for your dream house.