It's common knowledge that investing in real estate is not as easy as investing in a pen or an oven. For one, houses are mighty expensive, and two, there are a BAZILLION steps that go into buying a house—the loans, the savings, the documents, the agents... ahhhggh!!!

The process of investing in real estate sounds frustrating and perhaps a little complicated. Each of us has dreamed of living in a space where we add a personal touch and ultimately call our own one day.  Doesn’t that sound great? This is why we've listed five home-buying tips to help you hack your way around the real estate market with ease.

But wait! Before you get the keys to your own home, you should get your hands on Kool Kanya’s course ‘Finance Pass: Personal Finance Made Easy’. Come learn everything that goes into home-buying as well as some smart hacks to help with the financial planning for home buying.

At Kool Kanya, we believe that ‘Knowledge is power’, which is why with our PowerPass you can go beyond home buying and finance, and access courses that expand your knowledge on digital marketing, content creation, consumer research, and so much more, all of which will enable you to #RaiseYourPower and propel you forward on your journey of being the best version of yourself.

Let’s look at some essential steps to take while investing in real estate:


#Tip number 1: It’s time to financially assess yourself

#Tip number 2: Get into research mode

#Tip number 3: Hand-pick the right real estate agent

#Tip number 4: The home loan rule of thumb

#Tip number 5: Save for the down payment and create an emergency fund

#Tip number 1: It’s time to financially assess yourself

Before you start investing in real estate you need to evaluate your own financial health with a brief financial assessment. Start by asking yourself these questions:

  • How much money do I have in my bank account?
  • What is my budget?
  • When do I want to buy a house?
  • How much more do I need to save?
  • Do I have any EMIs or loans I need to pay off?
  • How long do I need to pay off my debt?

Once you’ve done a brief financial assessment, you will get insight into the time you need to pay off your debts. Subsequently, you will also begin to set realistic expectations, which will in turn help you determine the right time to make a real estate investment.

#Tip number 2: Get into research mode

We don’t know who needs to hear this but owning an extravagant-looking home with multiple bedrooms and a pool is just not the most plausible scenario. It’s time to set the record straight and begin looking at things more realistically.

Start by looking into loan interest rates and government schemes that could save you money. Additionally, pay attention to real estate market trends like:

  • The price hike post-pandemic causing home loan interest rates to rise
  • People moving out of the city and into the suburbs to have more open space
  • AR and VR tours of houses that can give you better insight without having to travel a distance

Finally, when it's time to approach a builder, ensure that they have a Real Estate Regulatory Authority (RERA) certification. This certification was introduced to protect consumer rights in the real estate sector as a result of the Real Estate Regulation and Development Act, of 2016. Checking for certification is how you avoid fraudulent builders.

#Tip number 3: Hand-pick the right real estate agent

If you have family or friends that have recently made home purchases, you’re in luck. Not only will they help you understand the do’s and don'ts of how to invest in real estate, but chances are your friends and family could refer you to their own real estate agents, to help make the process easier.

Here are four things for you to consider while picking the right real estate agent:

  • The agent's fees should be within your budget
  • Their credentials should prove their credibility
  • They should be clear when guiding you through confusing procedures
  • They should facilitate open communication and give detailed information

Once you've picked the right real estate agent, the home-buying process becomes significantly easier.

#Tip number 4: The home loan rule of thumb

Home loans can be a multi-decade commitment and their approval could take weeks or even months. However, to be eligible for a home loan, your Fixed Obligation to Income Ratio (FOIR) should be less than 50%, which brings us to the home-buying rule of thumb also known as the 35/50 rule.  

The 35/50 rule is to set a personal benchmark, where you ensure that the EMI for your home loan is not over 35% of your monthly income and the total EMI for all of your loans does not exceed 50% of your monthly income. The table below explains the EMI limit per the 35/50 rule:

Your monthly income


EMI limit for home loan (35%)


EMI limit for all loans (50%)

















First time home buyers might find taking a loan even more difficult, hence here are a few tips to make your home loan process a little easier:

  • Ensure that you meet the age, income, and employment eligibility criteria
  • Inquire with multiple banks for the best interest rates
  • Keep all your documentation handy at all times
  • Recognise that a longer loan tenure equals a higher interest rate
  • Read the fine print on the terms and conditions
  • Lastly, be prepared for a long wait

#Tip number 5: Save for down payment and create an emergency fund

Let us suppose that the property you are buying is worth Rs. 1 crore. Your initial upfront payment (the down payment) on the purchase will be between 10% and 25% of the total price. In this scenario, your down payment could range from 10 to 25 lakhs, and that is a LOT of money. This is why you need to buckle up and start saving.

Since home loan EMI’s take decades to pay off, it would be advisable to create a financial safety net, i.e., an emergency fund that enables you to pay off your EMI and avoid the mishap of missing an instalment and having to pay a higher interest rate.

In today's world, investing in real estate can practically cost you an arm or a leg, but the dream of owning your own home someday is one we all want to accomplish. Kool Kanya is here to help you fuel this desire with our course Finance Pass: Personal Finance Made Easy’. With this course at your fingertips, you will learn everything that goes into financial planning for home-buying, and investing in real estate.

So why wait? Sign up for the course today!

Disclaimer: You may be reading this blog after the current learning course has lapsed. Head over to our all courses page to check for the latest courses and get ready to reach for the stars!