There is so much of aspiration and hard work going in when it comes to buying a property. All those years of labouring and sacrificing will eventually bear fruit when you fulfill your longtime dream of buying a property.

And when you manage to successfully achieve this dream of yours, your visage should be happy and proud, and not be ridden with debt worries. So, below are the top

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5 things about your financial status that you need to keep in mind before buying a property.


This is the first and the foremost criterion that should be ticked off before you plunge into buying a property by availing a loan. When you are entitled to pay off your loan in monthly installments, it is necessary for you to ensure that you’re settled in your job. Your income should be sufficient enough to meet the EMI and the other monthly expenses of your family too.

money growing on hand


This ratio, as the name indicates, can be found out by dividing your monthly debt related expense by your monthly income.


Experts say that, to have a good debt-income balance, the DI ratio should not exceed a value of 0.28 i.e., only a maximum of 28% of your monthly income should go towards paying your debts.

budget and savings, money and credit cards


When it is said that the DI ratio should only be a maximum of 0.28, it is necessary for you to work out the budget (at which you plan to buy a house) accordingly, based on your income, so that the DI ratio doesn’t exceed the mark of 0.28. If your budget ends up being a little less than the bar you have set, don’t despair.

It doesn’t mean that you need to sacrifice your desire to own a reasonably big house. A proper selection of the location would help you if you wish to buy a considerably big house within your budget. Properties on the outskirts of the city are a better bet to invest in, if you choose the above said option.

confused between quality and price


This is one main basic thing which every individual ought to keep in mind whether they are planning to buy a house or not. Life is riddled with perpetual twists and turns, and it is our responsibility to be prepared to face these sudden bumps which we may encounter in our lives.

And particularly for those who are planning to buy a property buy procuring loans, it is absolutely necessary to have sufficient savings to meet emergency situations.

savings in a jar financial

As your entire salary will be spent on paying the debts and on fulfilling the other monthly expenses, it’ll be hardly feasible if you depend on your salary to meet your emergencies. The term ‘savings’ doesn’t necessarily refer to the possession of hot cash.

The savings can be in any form, say, material properties like jewels, etc. or possessions of immovable properties like plots/houses which could be mortgaged or sold when a financial pinch arises.


If you’re expecting some huge incomes to flow in, in the coming years, you can jolly well take the plunge of buying a house. The income maybe from the maturity of fixed deposits (FD) or from recurring deposits (RD) or from Employees’ Provident Fund (EPF) or from Public Provident Fund (PPF) or from selling old assets, etc.

But, if you are planning to touch your provident funds, be sure you have some other alternatives to manage your retirement life.

man sitting on a locker

So, when you’re busy in your house-warming celebrations, let not the debt worries dampen your happiness. Plan accordingly and act wise.

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