The world is changing at a faster pace than we can ever evolve. Phones have developed from wired, bulky devices to those with foldable screens, and everything around us has upgraded and advanced tenfold. Even if you are old school, you would need to upgrade your surroundings to be in sync with the world. You can start this process with your home. While you might be comfortable with everything that you have around you, upgrading it with advanced gadgets and technology will make life easier and your house modern. Before you take a look, note that there are 75 lakh home loan EMI, 80 lakh home loan EMI and even a 10-lakh home loan EMI, you may opt for a home improvement loan, a variant of home loan of any amount based upon your preference and repayment capacity.
How to make your home a smart home?
· Smart locks
Security is of utmost importance in your house. Smart locks enhance the house’s security and ensure that you are aware of any moment in the house. You can connect your smart lock with your phone and can lock and unlock the door with a simple tap on your phone. It will help you access your house even if you forget your keys and prevent thefts and trespassing. It can also prevent your kids from wandering outside without your knowledge.
· Intelligent products
Technology has made it easier for you to run so many gadgets and electronics without getting up from bed. If you install such smart gadgets and electronics, you can switch on or off your lights and fans and even open the curtains. These are based on room sensors and can detect temperature, light levels or energy levels. You can control these appliances remotely.
· Entertainment gadgets
If you like to watch movies or listen to music, you can buy a smart TV and speakers. A smart TV can give you a cinematic experience with Dolby sound and vivid picture quality. It is connected to the internet and can be used to stream OTT channels. You can also connect it through your smartphone for better features. Moreover, you can also invest in a smart virtual assistant that can recognise your voice and carry out your instructions. You can instruct it to play a song, news or weather report just through your voice. If you are a music buff, you can equip your home with a home theatre system and built-in speakers, which would give you a surreal experience of listening to music. These speakers can be integrated into false ceilings, beams and cabinets.
· Use robotic vacuum cleaners
Vacuum cleaners can help you clean your home faster. Robotic vacuum cleaners can clean your house in a better manner without your involvement. Robotic cleaners adjust themselves to the house walls and floor and are programmed to act on their own.
Purchasing such advanced gadgets and equipping your house with technology can simplify your life and reduce manual work. These can also provide you with a secure and healthier life with time. However,
these can be expensive in your pocket. Thus, why not opt for a home improvement loan to fund your home upgrade? But before you start exploring the loan, ensure to gather all the adequate details about the loan, especially housing loan interest rates.
Also Check: 80 lakh home loan EMI
Note that a home improvement loan is a variant of a home loan. Read on about what you must know about a home loan.
When you are applying for a home loan, you need to consider its impact on your finances over the long term. A home loan is a long-term commitment, 15 to 20 years, and would require you to use a significant chunk of your salary every month to pay the Equated Monthly Instalment (EMI) throughout the loan tenure. This means that once you apply for a home loan, going forward, a specific percentage of your salary will go towards the home loan EMI and then you will have to meet your remaining expenses and savings and investing goals accordingly. Hence, it’s crucial to consider what percentage of your salary should be accounted for your home loan EMI before you apply for the loan.
The ideal percentage
As a rule of thumb, your home loan EMI should not exceed more than 35% to 40% of your income. The primary reason for this is that you need to meet a host of other expenses, and you should have some breathing room. If you put too much of an EMI burden on your income, say 60%, it might become hard for you to meet other financial obligations. In such a scenario, you may either default on your home loan EMI, or you may be forced to take unsecured loans like personal loans and credit card loans.
Ideally, all your loan EMIs, home loans and EMIs of other types of loans that you may have should not exceed 40% of your income. While you repay your debt, you will also need to take care of other important financial aspects such as saving for retirement, investing to meet short-term and long-term goals, building an emergency fund, etc.
Things to keep in mind
· Depending on your income, age, life goals, lifestyle, etc., a percentage that is ideal for you may be different. Hence, you shouldn’t just blindly follow the 40% marker, and you should look at your income and expenses figure.
· You also need to consider your career and income advancement. As your income increases, you may be able to afford a higher EMI. But in the beginning, you should not overextend yourself. You should also consider the possibility of career stagnation or job loss.
· When considering your income, look at your stable income that is guaranteed and does not account for additional income that is unstable. For instance, if you have a full-time job and you occasionally tend to freelance, too, don’t consider your freelance income when determining the percentage of your income that should go towards your home loan EMI.
· Since the home loan tenure tends to be long, there is a possibility of home loan interest hikes in the future. This may change your EMI and make it higher. Hence, you should keep some room for that as well.
Use a home loan calculator.
Before you apply for a home, make sure to use a home loan EMI calculator. This helpful online tool will give you an idea of what your home loan EMI obligation will look like and how you can financially plan for it. You can also try different home loan tenures for the same home loan amount that you require to get different EMI amounts to see which fits you the best.
