Buying a new home is not an easy task and people tend to make a lot of mistakes. This article will act as a guide for home buyers.
1. Buy when you are young: Once you have decided to buy a home, don’t waste too much time waiting for the right moment. Don’t be afraid of the EMIs or monthly commitments. The good thing with EMI is they are consistent throughout the loan period, but your salary will keep increasing. To start with, you might be paying 40% of the salary to the EMI, but in a few years, this percentage will decrease to 35, 30% respectively as your income goes up. So don’t waste time, buy when you are young.
2. Take a Wise Decision: Don’t consult 10-15 people about buying a property. Each and everyone of them would have faced a different problem or experince while buying their home. This will only add to your confusion and won’t provide a solution. Instead consult your family or close friends and take a wise decision whether a property is good enough or not.
3. Early Bird Offer: Most of the popular builders will throw an Early Bird offer where they will offer a hefty discount for first few buyers. You can easily save 10-20% of the property value if you are smart enough to get hold of this offer. Such offers are too good and will be sold out in just hours. So keep tracking the newspaper for such ads and make the best out of it.
4. Don’t buy only for freebies: It has become a common practice for sellers in this dry real estate market to lure buyers with a lot of freebies. Some of the freebies include
- Free Car
- Free Two-Wheeler
- Free Interior Design
- Free Furnishing the home
- Free Furniture
- Free AC, TV, etc
Before blindly investing in these offers, just think why a builder is offering freebies. Don’t get overwhelmed by the freebies, instead look at the property quality and pricing. In most cases, the cost of freebies are embedded in property cost.
5. Don’t stretch your budget: There will be 1000’s of houses which look extremely pleasing to eyes and also are of great quality. You can’t go for them blindly, instead see if they fall under your budget range. Plan your budget first before starting your house hunt. It is ok to stretch your budget 5% for a great property, but not more than that.
6. Go with Reputed Builders: Give first priority to reputed builders in your city. See their past track record on how prompt they are with handing over the property. Check their quality ratings, legal issues, etc before selecting the builder. Don’t buy from a promoter just because it is cheap, you might end up getting the property 2-3 years late.
7. Check your Loan Eligibility: First and foremost, you have to know your eligibility. Many people waste their time without knowing this. Approach your banker and answer a few questions. Based on your credit score and take home salary they will inform you about your approximate loan eligibility amount.
8. Legal Matters: This is the crucial part for a smooth buying experience. Make sure all the documents are in place for the property that you are buying. Consult a legal expert to examine the papers and also get the EC done. If you are opting for a bank loan, then they will also verify legal aspects.
Must Read: 5 Things First Time Home Buyers Should Know
9. Don’t go for other loans: Buy your home only with home loan. If you need to raise money for upfront payment, don’t go for personal or credit card loans. Instead borrow from your family or friends. If needed sell your jewelry or other property.
10. Finalize your requirement: You need to understand what kind of home you need and in which place before starting your search. Don’t start looking at best houses and all offers. Instead narrow your search to specific 2-3 areas.
Do your homework, be smart and then start searching a property. Don’t start without data in hand. You need to finalize type of home, location, budget, etc before you start out. You can find 1000’s of property for sale in Directowners.