Property investment is a significant investment in life. However, if you wish to buy residential plots for sale in Bangalore, you should be diligent and ensure proper consideration of the correct documents. If you wish to invest in a plot, you should look into the exemplary financial aspects of property investment.
When financing your property investment, you should look into all possible solutions to ensure the best decision. From crowdsourcing to traditional mortgages, there are different financial options that you can consider. Some of the best financial aspects to consider while buying a property in Bangalore are:
● Ensure a Sizeable Down Payment: As mortgage insurance will not always cover investment properties, you should aim at pulling off around 20% as the down payment for securing traditional financing from a professional lender. If you make a down payment of around 25%, it can qualify for a better interest rate.
With a significant down payment, you can get ahead in the game. It serves to be a powerful incentive. Moreover, a larger down payment also offers the bank greater security against losing the respective investment.
● Serve the Role of a Strong Borrower: The policies and LTV or Loan-to-value ratio of the lenders are also critical financial considerations while investing in a property. Therefore, you should aim to check your credit score before you ensure a deal. A poor credit score will cost you more money for the interest rate. Therefore, before investing in a plot of land, it is recommended to work towards improving your credit score.
● Turn to a Local Broker or Bank: If you are not making a significant down payment, you can think of visiting the local bank for adequate financing instead of a high-end financial institution. Local banks might offer you more flexibility. They are also aware of the local real estate market effectively and take more interest in local investments.
Mortgage brokers are also another great option as they have access to a wide range of loan-specific products. Before you finalize a broker, it is recommended to do your part of the research properly. What is their industry-specific background? Do they have an association with any professional organization?
● Request for Owner Financing: In today’s era, wherein anybody is capable of applying for a bank loan to invest in a property, you can think of requesting owner financing. In the modern era, owner financing is becoming more common as credit value increases. Also, the standards for borrowers have also improved.
You should prepare a proper plan before requesting owner financing. The plan reveals that you are serious about the given transaction.
● Consider Personal Loans: Personal loans and credit cards are easy ways to finance your home or property purchase. Some credit cards are available with minimal (zero percent) introductory offers. Moreover, personal loans also allow you to borrow a significant amount of money to fulfil your dreams of investing in a property.

While both are highly convenient forms of financing, personal loans can come with higher interest rates. Therefore, you should do your research beforehand.

● Tap on Your Retirement Savings: According to financial experts, it is not suggested to withdraw retirement savings while making a real estate investment. However, if you have the dire need to invest in a property that you would lose otherwise, you can think of tapping on your retirement savings to fund the same.
● Look Into Relevant Property-related Documents: An in-depth inspection of essential documents is important to ensure ownership of the property. It also helps in avoiding any problems in the future. With proper documentation, you can gauge the amount of legal work needed to finalize the property’s sale deed.

As a buyer, you should also be mindful of any hidden fees and other paperwork requirements -including ownership transfer and documents related to the mortgage. You should understand and negotiate ambiguous fees -including statutory or local charges, insurance premiums, repair charges, and so more.


As you look forward to buying a property in Bangalore, it is imperative for you to understand the financial aspects of real estate investments.