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May 2017

Guidelines before buying a home

Guidelines before buying a home

Things to keep in mind before buying a home

Buying a home is a tough and a big decision for the home buyers. So the first thing to be done before buying a home is to figure out if investing in any property is the right choice for you or not. This decision depends on the home buyer and his financial status. The buyer should take potential cost saving moves before buying a home. Below are some guidelines mentioned for making the home buying an easy and cost-effective process!

Buy or Rent

Possessing a home is expensive. There are people who buy a home thinking they will use lease to pay EMIs. This certainly is the wrong way of doing it as the rental yield on housing properties is generally 2-3%. There are chances that the property may remain unoccupied for months before finding the right resident. In addition to the down payment, there are other charges for insurance and maintenance. To figure out if it’s financially smarter to buy or rent, calculate and compare total home possession costs to lease rates.

Don’t commit unless you are ready to purchase

Buying a home is a big commitment as it involves a lot of expense. So, before purchasing a home one has to be sure that he is financially ready for such a huge commitment. As, in addition to monthly loan payment, there will be other expenses for the homeowner’s insurance, property tax and additional cost for buying a home.

Verify the constructor

Before buying a property, a detailed study has to be carried out by the buyers. It can be that the piece of property you are thinking to buy may be under any lawsuit or any other legal dues. Hence, an extensive verification of the constructor has to be done. One can talk to friends, business agencies, look for the builder’s current and past ventures or can even post questions on the various real estate columns available online.

Know how much you can spend

This comes after the verification of the constructor and can be easily known by starting online. There are numerous online mortgage calculators that help to calculate an affordable monthly loan payment. There are home loans available with little or no down payment. A home loan expert can guide the home buyer to understand all loan options, fees, and the closing costs.

Estimate the total price

While buying a property make sure to ask the agent the final property cost. Most of the times it is found that the brokers or the agent only mention the basic price and no other charge for location, parking, external and development fees, service and concierge services which increase the final cost.

Precise plan to invest

Before investing in property one has to know the various payment options available in the market. These various payment plans are construction linked plan, flexible payment plan, possession linked plan and down payment plan. It needs to be selected very cautiously as there is an additional cost for every single facility and service in the property. Home buyers should also know that any delay in the payment on the part of the builder will impact the credit history.

Check the infrastructure location

The right location gives an additional advantage to the property. So make sure that the property is in the vicinity of big infrastructure development or has great connectivity which can boost return on investment tremendously. Also, ensure that the property is not close to any polluting industry which might cause major health issues.

Survey the site

It is seen most of the time that outline of the property as mentioned in the catalog may vary from the reality. So, a site visit is a must before booking the property. One can also have an interaction with the nearby residents who can give an idea if there are any legal disputes related to the property.

Book the property

After complete survey and selection of the property, one has to register the property with the respective authority to become its legal owner. By registration of the deed, one acquires the right to the property from the date of execution of the deed. At last, one has to ensure that there is no possibility available that may hinder the property development. For this, one can probably refer to various online real estate forums.

All these guidelines would help one to make their property search experience fruitful and not get into any troubles or issues while buying a property.


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