How millennials can use these financial hacks to buy their first home

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Subscribe to enjoy similar stories. MUMBAI : With real estate prices going through the roof post the pandemic-induced slump, the aspiration for homeownership has become notably challenging for many Indian millennials. Mint has designed this guide to clarify the path to owning a home for millennials, address the obstacles mid-career professionals face, explore available government assistance, and offer actionable financial strategies for purchasing their first home.

Down payment: Managing the down payment is one of the first hurdles that new homebuyers face, especially in metropolitan cities where property prices are extremely high. A two-bedroom-hall-kitchen (BHK) apartment in a metro city can cost anywhere from ₹70 lakh to ₹2 crore. Lenders can finance, at the most, up to 90% of the property value.

So, if you wish to purchase a property in a good locality of any tier I or tier II city, then the down payment can be somewhere around ₹10 lakh to 20 lakh. Affordable EMIs: Affordability is another challenge that determines the decision to purchase a new home. Many millennials find that even with a stable income, the price of homes outpaces their saving ability.

A person earning ₹1 lakh per month may not be able to afford an apartment with an EMI of ₹30,000 because of other monthly expenses. On the other hand, a person earning ₹70,000 can afford that apartment if he or she has maintained financial discipline and keeps other expenses under check. Loan eligibility: This is the part where banks and financial institutions come into play.