Arranging finance for buying a property?

So you’ve decided you want to buy, you may have an idea of what and where – but it looks expensive. What ownership options are available to you for buying a property? Are there any low cost options you could take advantage of?

Ownership options for financing property

Buying a property with someone else: this is commonly called a joint home loan (or joint ownership in India) and can make the buying process easier, for example buying with parents, friends or a partner can actually ease the financial pressure. But remember relationships can change and circumstances alter, so you might want to get legal advice before deciding which type of ownership is right for you. If you do decide to buy with someone else you might want to get a contract drawn up saying who has contributed what, what you will do if someone wants to move out or sell up, etc.

Buying a property with Parental help: due to the drastic increase in house prices in India, more than 50% of first time buyers now have a form of financial support from their parents. This doesn’t mean having to jointly own the property, but parents may help with finding the cash for a deposit, or even help get a home loan where the parents’ circumstances can be taken into account in order to borrow more, or reduce repayments. These are sometimes known as Guarantor Home loans.

Other overall lower cost routes for buying a property

Buying a Repossessed property: this can be a cheaper option for first time buyers as properties are often sold at a fraction of the real cost. Although many home loan lenders now prefer not to declare how many properties they have repossessed, you can still enquire and find out where there may be deals. However these properties could have been vacant for a while and may need work or repairs to be done.

Buying Property at Auction: Thousands of properties are sold via property auctions in the India each month. Although this may result in a great deal, it can be risky since you are usually unable to get the property surveyed before bidding.


Do your research… just because house prices seem high, it doesn’t necessarily mean that you can’t afford to buy a property. There are so many different options out there that give first time buyers a chance to get their foot on the ladder; you just need to have a really good look around and do your research. Make sure you get sound, up-to-date advice.