The current generation is buying their first homes much faster than the previous one. The reasons for the same are many. Rise in disposable incomes and easy availability of finance being the major ones.
So assuming that even you are looking to buy your first property soon, what are some of the important things that you need to consider?
Here are 10 tips that we have to offer you:
1. You shouldn’t buy something that you cannot afford. By affording, we ofcourse mean that you also need to assume that you will be taking a home loan. Also, don’t forget to include expenses related to furnishing, painting, and stocking up kitchen with electronic appliances, etc. These are things that cost lacs of rupees and generally don’t figure in the initial cost estimates.
2. Location is one of the most important factors when you buy your home. It is always a good idea to buy a property in an area which has potential for growth. But such locations don’t come cheap. So you need to look for a location that balances your needs of affordability and growth potential. Also ensure that the chosen location offers convenient access to educational institutions, parks, shopping areas, offices, etc.
3. There is a reason that good builders with reliable delivery track records are chosen by most. Always establish the credibility of the builder, as you don’t want to end up with a project that is delayed by years due to builder’s inefficiencies.
4. Builders offer different payment plans like construction linked, time linked, etc. Do clearly understand which is the plan proposed by your builder and what will be your periodic outflows.
5. The property chosen by you must have all legal approvals and sanctions in place. Any deficiency on this front can have serious consequences for you, in case the project gets caught up in some legal problems resulting into any litigation.
6. Make it a point to review your current monthly EMIs to get an idea about how much more can you pay as home loan EMI every month. It is important not to stretch yourself too much. A thumb rule is to have EMIs not exceed 40% of your take home pay.
7. You might be buying a property today but it is possible that same property might not be big enough for your future needs (Example – you plan to raise a family soon). So when buying, make sure to give thought to your future requirements too.
8. If you want to be rest assured of your future monthly outgoes, then choose fixed interest loans. Otherwise, you can take the floating rate loans to benefit from any future fall in interest rates.
9. Make sure you have a good credit history (CIBIL score) before you apply for the loan. Banks mandatorily require applicants to have good score to establish their credit-worthiness.
10. Not all banks offer the same rates of interest. Do compare and negotiate with them to get the best possible deal for your loan.
