InvestorQ : How can I begin to save and invest for my dream house?
Gayatri Surendran made post

How can I begin to save and invest for my dream house?

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varsha Motwani answered.
1 year ago
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Building a house or upgrading to a better one is one of the main goals of any person, but often does not give it the time and planning it requires. We are sitting in the hope that one day banks will give us enough loans to make our dreams come true, and with that though we do not put enough thought into what we can do better?

However, you need to follow a certain process that will make it easy for you to save and invest in your dream house. 

1) Figure out the cost of the house: This is the most important factor, as you need to estimate the cost of the house, so you can plan accordingly. This means the estimation should be thorough and keeping all factors in mind and providing for other contingent factors as well. So, always make inflation adjustments. 

2) Start saving for a down payment: Even if you want to buy a house on loan, you should start saving for the down payment. This will ease the burden on your EMIs and reduce all your costs relatively, including interest and other processing costs.
However, do not just save, rather invest the money you save with a goal to collect a certain amount. This way, you will have to set aside a lower amount, and your returns will fill up the gap. Do not invest this amount in highly risky options. 

3) Finance the balance amount: Since you have saved enough money, you can begin by paying a down payment and getting the balance amount financed. 

This way, your burden will be reduced as you will be saving up already for the major part of the loan amount, which will increase due to returns on such investment.
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