Things property buyers should not do if they are paying EMI

• Admin
• 28-10-2023

Buying a property is one of the biggest financial decisions that most people make in their lifetime.. It is important to do your research and make informed decisions throughout the process, especially if you are paying EMI. Here are some things that property buyers should avoid doing if they are paying EMI:

1.      Not budgeting carefully

Once you have bought a property, it is important to budget carefully to ensure that you can afford the EMI payments, as well as other associated costs such as property taxes, maintenance, and insurance. It is important to factor in all of your expenses, including your monthly income, debt obligations, and lifestyle choices.. If you’re unsure about how to  budget, there are many resources available online and from financial advisors.

2.      Missed EMI payment

Even one missed EMI payment can have serious consequences.. This can hurt your credit score, making it more difficult and expensive to borrow money in the future.. It can also result In late  fees and penalties from your lender.. In some cases, non-payment of EMIs can even lead to foreclosure..

3.       Excessive debt

It is important to avoid becoming over-indebted by borrowing too much money.. This means  you need to make sure  your EMI payments are reasonable and that you have enough money left over to cover your other expenses. A good rule of thumb is to keep your EMI payments below 30% of your monthly income.

4.      Do not get insurance

It is important to have property insurance to protect your investment in the event of damage or loss.. Property insurance can cover many different risks, such as fire, theft, and natural disasters. It is important to choose an insurance policy that provides adequate coverage for your needs.

5.      Not maintaining your property

Regular maintenance is essential to keep your property in good condition and preserve its value.. This includes things like painting, fixing leaks and repairing  broken appliances.. If you neglect to maintain your property, it could lead to costly repairs down the road..

6.      Make impulsive decisions

When  paying EMIs, it is important to make wise financial decisions.. Avoid impulse purchases, like buying a new car or going on a luxury vacation. It’s important to avoid taking on new debt unless  absolutely necessary.

7.      Not tracking your finances

It is important to track your finances regularly to ensure that you are on track with your EMI payments and other financial goals. This will help you quickly identify any potential problems  and take corrective action. There are many different ways to track your finances, such as using a budgeting app or spreadsheet.

8.      No emergency fund

An emergency fund is a savings account that you can use to cover unexpected expenses, such as  job loss or a medical emergency. It is important to have an emergency fund, especially if you are paying EMIs.. This will help you  avoid falling into debt if something unexpected happens.

9.      Not planning for the future

It’s important to  plan for the future, especially if you have children or other dependents.. This includes things like saving for retirement, paying for your children’s education, and taking care of your health.. It’s important to regularly review your financial plan  and make any necessary adjustments.

10.  Not seeking professional advice

If you have any questions or concerns about your EMI payments or other financial matters, it is important to seek  advice from an advisor sufficient financial capacity. A financial advisor can help you  budget, track your finances, and develop a financial plan..

Additional tips for property buyers paying EMI

Here are some additional tips for property buyers paying EMI:

1.      Make additional payments whenever possible.

Even a small extra payment each month can help you  pay off your loan sooner and save money on interest.

2. Consider refinancing your loan.

If interest rates have dropped since you took out the loan, you may be able to save money by refinancing.. Refinancing involves taking out a new loan to pay off your current loan..

3.Learn about tax benefits.

Many tax benefits are offered to owners.. For example, you can deduct  mortgage interest and property taxes from your income taxes..

4.Build your credit score.

A good credit score can help you  qualify for lower interest rates on loans and other forms of credit. This can help you save  money when paying EMIs and other financial obligations.

By following these tips, property buyers can avoid making common mistakes and ensure that they can meet EMI payments and other financial obligations.