A home is amongst the most valuable investment options. But, like all good things, a home is costly too and the cost of an average home runs into lakhs. Therefore, the best possible way to own a home is by applying for a home loan. At the time of making the purchase, it is also imperative to keep in mind that you need to build home equity at a much faster pace. Home equity is your home’s current value, excluding the part that you own. For e.g., if you purchase a home by making a down payment of 20 percent, then your share of equity in the home will be 20 percent. Over the months or years, you will repay the monthly EMIs and as a result, you will be building more equity. It takes time to build home equity, but there are ways through which you can build it much faster whether you buy a villa or premium 2 BHK flats in Thane.
Make a substantial downpayment
One of the easiest ways to build home equity at a faster pace is by making a large down payment. Normally, a homebuyer has to pay around 20 percent of the cost of the house as a down payment. But if you have substantial investments then you can consider making a much larger down payment. Though you will be parting with a much bigger sum but it will have numerous advantages in the long-run. You will have larger ownership in your house and will be paying less interest on your monthly EMIs.
Buy an affordable home
Premium homes or luxury apartments come with a host of benefits that provide a good lifestyle. With a premium home, you will also be able to get a much higher home equity. The drawback is that it will take many years to achieve that. But by purchasing an affordable home you will be in a much better position to make a substantial down payment. This will leave you with a much lesser amount that you will have to spend on loans or mortgage, thereby, enabling you to build home equity at a much faster pace.
Make improvements to your home
Making a few improvements to your home will go a long way in increasing its value and enabling you to increase your home equity. However, not all improvements will give you the returns. Therefore, if you are planning to build home equity quickly, focus only on improvements that will get you the desired results. Certain improvements that can be beneficial include replacing the porch door, making improvements or replacing the attic insulation, making changes in the bathroom among others. Other than this, you need to ensure that your home is in prime condition. For this, you need to continuously check for cracks or other such issues that may crop up from time to time and get them repaired at the earliest. The better the condition of your home, the faster you will be able to build home equity.
The bigger your home equity the better it is. By following simple steps like making a large down payment or renovating the home will enable you to build home equity at a much faster pace, which will be beneficial in the long run. Thane is among the best real estate destinations in India and by purchasing a 2 BHK on Ghodbunder Road Thane, you will get attractive returns.
