Smart Budgeting Tips for Buying a Home in Pune

Published on: 30 May 2025

We all have our own idea of a perfect dream home. For some people, it is an apartment by the sea, for some, it is a small row house in a quiet neighbourhood, and for some, it is a spacious flat in a high-rise complex. It’s all about our preferences, needs, likes, and dislikes at the end of the day.

But regardless of your ideas and choices, the first thing you’ll need to finalize is the budget. It’s the very first step in the process of buying a home in Pune, and unfortunately, determining a budget is easier said than done.

There are multiple factors to consider, from your current income & future plans to your dreams and family responsibilities.

Besides, there can be a gap in the amount you want to spend on your home, what you think you can afford, and what you can actually afford. That makes the home-buying process all the more difficult, especially if you are a first-time homebuyer.

Don’t worry, though.

In this blog, we have simplified the otherwise complex process of setting up a budget for buying a home. Read on to get started!

Prioritise your needs:

First things first. You must be crystal clear about what kind of house you want to live in. Ask yourself whether your dream home consists of a one-bedroom-hall-kitchen (1 BHK) flat, or a 2 BHK, or a studio apartment. Do you want to buy a pre-owned home or invest in one of those upcoming & under-construction residential projects in Pune? Also, zero in on the type of locality and neighborhood you think would be ideal for your family.

Getting these basics right in your head will make you aware of your own requirements. It will also serve as a practical checklist, which would help draw up rough budget expectations.

Evaluate your finances:

Being optimistic is one thing, but staying in a bubble about your financial status while buying a residential property in Pune is a bad idea. Hence, before you begin your house-hunting journey, or form a huge budget in your mind, analyze your current financial stature at the earliest.

Make a list of all your savings and investments, along with your present monthly income and expenses. Don’t forget to keep room for planned, recurring expenses like your children’s school fees or sudden unforeseen expenditures, for instance, medical emergencies.

Doing so would help you arrive at definitive numbers, painting a realistic picture of your financial capability.

Do thorough research:

Once your requirements about the house & locality are clearer, it’s time to get out there to do some practical research.

Visit the localities fitting into your “ideal home” image, and find out the current property rates in those areas. Check the amenities in and around the neighbourhood, for example, connectivity & fulfillment of basic needs like groceries & medical help.

Determine the scope for future growth in the area. Such factors tend to affect property prices significantly, which, in turn, influences your budget.

Doing a simple online search can give you the answers you’re looking for. You could also talk to the local real estate agents for clarity.

Check your down payment limitations:

Once you’re on a house-hunting spree, you never know when and which house may instantly click with you. Therefore, it’s only wise to have your payments planned well in advance.

Analyze how much of the token amount and down payment you can afford. This should seem simpler once you have accurate insights into your savings & investments.

The idea is not to stretch your down payment capacity too much so that it affects your emergency funds or the quality of your current lifestyle.

Analyze your home loan eligibility & EMI capability:

When it comes to home loans in Pune, there are plenty of options. Different banks have different eligibility criteria & interest rates, in line with the RBI rules. 

Check where you stand in terms of home loan eligibility by reaching out to your bank.

The eligibility depends on aspects including your salary, age, work experience, and credit score ratings. A good credit score can get you a lower rate of interest on your home loan.

After knowing your eligibility, you can calculate the amount you’ll need to pay as your monthly installments, aka EMI. Again, check this with your bank’s loan offer. The EMI is lower when the loan tenure is high.

While choosing the EMI and loan tenure, keep in mind your financial stature, monthly expenses, other EMIs you may already be paying, and the need for emergency funds.

ADon’t forget to count in stamp duty & registration fees:

While buying a house in Pune or any other city in India, you may need to shell out some extra money as certain charges.

Such charges include registration fees, stamp duty fees, etc. Moreover, the stamp duty & registration charges vary from state to state.

Thus, factoring in these added expenses when creating a budget to buy a home is a must to avoid going overboard with your finances.

Assess the possibility of added expenses:

If you’re planning to buy a pre-owned home, there are chances you may want to redo the interiors in part or whole. In this case, it may translate into additional expenses, stretching your budget.

For those planning to buy a property that is under construction, extra spending may arise in the form of rental expenses, for example.

Apart from that, there are costs of third-party services too, for instance, lawyer fees for the legal documentation & agreements of the house.

Also, consider the monthly maintenance charges levied by housing societies. Such costs, together, make for a big amount and need to be well-planned while budgeting.

The points we explored above are the essential aspects of drawing up a budget for buying a residential property in Pune.

Since we know how difficult it can get to get things right all by yourself, you can count on us for professional guidance. Feel free to drop us a mail at support@estatemint.com.

For more insightful information on everything real estate, keep reading the EstateMint Blogs.