Estate planning is the preparation of tasks that serve to manage an individual’s asset base in the event of their incapacitation or death.
A Real estate plan is a collection of documents that protects your assets and personal property (your “estate”) and explains how you want to pass them down. It documents your wishes and specifies exactly who will guard those wishes and act on them in your absence.
Why need Real Estate Planning?
Buying a dream house is every Indian’s most important financial decision and any such real estate planning may affect the financial well being of the individual. Real Estate decisions may be the best or the worst financial decision of an individual.
Planning makes perfect and therefore perfect Real Estate Financial Planning ensures that you smoothly build your dream house out of your legitimate income without compromising on your lifestyle.
What are the various aspects of Real Estate Planning?
- Buying or building a dream home may be an emotional decision but real estate financial planning has to be a ration decision.
- Your Loan EMI should not be 35% of your financial income.
- You can build your dream home without burning hole in the market. Connect with us to find out how.
- Instead of carrying the EMI load, meticulous planning and planned approach should be the correct approach to turn your dream into reality.
- Pay yourself first! You should be able to save something for your future before you spend. Income minus savings equal to expenses should be your thumb rule.
- You should be able to save 10 to 35% of your post tax income, depending on your age.
- Don’t compromise with the Emergency Fund as well as Life Cover!
- Your EMI obligations should be not more than 50% of your monthly income.
- Keep your Credit Score 750+ for the best deals.
- Follow the diversification Strategy via the Mutual Fund route to create fund for your dream house.
Estate Planning can be done through:
Estate Planning is not a simple exercise and requires a lot of introspection by the individual or together as a couple. It becomes a little more intricate if there are minor children involved.
One must start thinking about Estate Planning from the moment one starts working and has dependents.
Even if you do not have dependents, making sure that your assets would be property distributed helps to ensure fewer conflicts.
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- Will
- Power of Attorney
- Trust
- Life Insurance
