Buying a house is like baking brownie, really. Both have a set procedure that needs to be followed and if done rightly the end result is a chocolatey chewy brownie and a nice cozy place that one can call home.

Before one embarks on this financial journey of buying a house, a few things need to be considered. Here is a list that can help one in taking the first step.

1. Why do you want to buy a house? – this is an important question to be considered, if it is for renting or residing plays an important role in the factors of budget, location, interiors and other expenses. House is an asset that appreciates over time and can be good financial security in the future. 
2. Location – 
   1. Renting – if the house is for renting out, then buying it closer to the city with good neighborhood and probably a smaller space would be beneficial in terms of getting a tenant. 
   2. Self-Residing – when it for oneself, the decision needs to be thought-out – if there are children, then a locality with good schools, safe neighborhood with good medical facilities will be the driving factor. 
3. Plan for the house – One cannot overnight decide to buy a house, it has to be a planned process so that financial burden can be reduced and there is no undue stress on oneself. 
   1. Set a realistic budget for the house – what home can one afford with their current income.
   2. Start saving for the down payment even though one may want a housing loan.
   3. Budgeted expenses – reduce unwanted expenses – like dining out 5 times instead of 8. Buying only what is essential and curbing unnecessary expenses. 
   4. Start a saving scheme that is suits one – investing wisely and early can yield great returns and reduce the burden of a financial loan later on.
   5. Keep a reserve – in the current scenario it is uncertain if one’s job is secure considering how the pandemic has affected all. To tackle this issue, it is advisable to keep a reserve aside so that expense can be covered.
   6. Sundry expenses – buying a house has other expense apart from paying for the house, there is registration cost, maintenance, interiors of the house, property tax, insurance, electricity and water, to name a few. All this has to be considered while preparing the budget and included in the saving plans.
4. Benefits of owing a house – 
   1. Property is an asset that appreciates over time and is a good investment for once retirement plans.
   2. Housing loans offer tax benefits – Under Section 24 of the Income Tax Act, you can claim up to Rs. 2 lakh per financial year on the interest paid on your home loan. And under Section 80C, you can claim up to Rs. 1.5 lakh per financial year on the principal repaid.

Buying a property can be done wisely at a young age so that you have a secured home while you can still enjoy it.