Can You Really Afford A House In Bengaluru? | Summary and Q&A

September 3, 2022
Wint Wealth
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Can You Really Afford A House In Bengaluru?


Before buying your first home in Bangalore, consider factors such as upfront cash requirements, additional costs, location, loan planning, EMIs, joint loans, and insurance.

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Key Insights

  • 🇨🇷 The average cost of a three-bedroom house in Bangalore is 1.25 crores, with significant additional costs that can reach 1.44 crores.
  • 🖐️ Location plays a vital role in the value and resale potential of a property.
  • 🆘 Loan planning strategies can help minimize interest payments and offer flexibility.
  • 💾 Shortening loan tenures can save on interest, but prepayments can achieve the same result.
  • 🈷️ Joint loans with spouses provide advantages such as increased loan amounts and shared responsibilities.
  • 👪 Insurance, including term insurance and home insurance, is crucial for protecting both the property and the homeowner.
  • 😒 RERA-approved projects and the use of escrow accounts safeguard homebuyers from fraudulent builders.


so like we sell the villas for the six seven rupees the most expensive hot happening is the lively road we pay around forty thousand rupees thirty to forty thousand piece per square feet the average cost of three bhk in bangalore is one point two five crores the emi for this at an interest rate of 8 for 20 years would be around 80 000 still managea... Read More

Questions & Answers

Q: What are the upfront cash requirements for buying a home in Bangalore?

Upfront cash requirements include a 20% down payment, a 12-month emergency fund of your salary, and around 15% in additional costs, totaling around 64 lakhs.

Q: What factors should I consider when choosing the location of my home?

Important factors to consider when choosing a location include proximity to corporates, schools, and hospitals. Better locations may come at an extra cost but offer better resale or rental value.

Q: What is the recommended loan planning strategy?

Banks typically provide 80% of the property value as a loan amount, requiring a 20% down payment. It is advisable to keep the loan amount lower, but you can also consider investing surplus cash to earn returns that surpass the loan interest.

Q: How long should the loan tenure be for a home loan?

The ideal loan tenure depends on individual preferences. While shorter tenures save on interest, longer tenures offer smaller EMIs. Consider making prepayments to pay off the loan earlier if you have the means.

Q: Should I opt for a joint loan with my spouse?

Yes, opting for a joint loan with your spouse has advantages such as a higher loan amount, lower interest rates with good credit scores, and both partners enjoying tax benefits and shared financial responsibility.

Q: How can I protect myself from fraudulent builders?

Look for RERA approved projects, which provide protection for homebuyers. RERA ensures regulated construction practices and the use of separate escrow accounts to safeguard your money.

Q: What insurance options should I consider when buying a home?

It is recommended to have a term insurance policy that covers at least two times your loan amount. Additionally, consider insurance coverage for unforeseen circumstances, such as loss of employment or death, to protect your investment.

Q: What is the significance of financial planning in the home buying process?

Financial planning is crucial to avoid financial strain. It is important to have a clear understanding of upfront costs, loan planning, EMIs, and additional expenses to ensure you are financially prepared to buy your first home in Bangalore.

Summary & Key Takeaways

  • The average cost of a three-bedroom house in Bangalore is 1.25 crores, with additional upfront costs amounting to approximately 64 lakhs.

  • Additional costs include registration duty, stamp duty, and interior costs, which can significantly increase the final price of the house.

  • Location, size of the house, loan planning, EMIs, joint loans, and insurance are all important factors to consider when buying a home.

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