Buying a home is a daunting task as much as it is a cherished dream for most of us. It involves a huge financial sum, sometimes a lifetime of savings. There are some crucial things to consider when you decide to take the plunge. This blog will talk about the top ten things you must consider when signing on the dotted line.
Top 10 things to consider when buying a home
Assess your requirements
First, you must assess your needs. Think about the configuration of your abode- how many rooms you need, how many balconies? Which amenities are you looking for in a project? Do you want a school nearby? Check on the location and the current infrastructure. Do you need public transport to travel? Is it available at the location you are seeking? Ask yourself these questions to know what you want. Evaluate your needs and make room for future needs, too.
This assessment would help you zero in on the right type of property for you.
Assess your finances/ fix a budget.
Budget allocation is a crucial part of the home-buying process. You must know that for an initial down payment, you would need a significant amount from your savings; the rest amount may be financed through a home loan. Fix the amount you can pay for the EMI comfortably. Here, consider any other EMIs being deducted from your salary. You need some amount from your salary as a monthly expenditure. To this, add the amount for the home loan, too, and check if this new average payout monthly will work for you or not.
When fixing the budget for your home, consider the following pointers: monthly income, any other financial liabilities, debts, and emergency funds. Set a realistic budget for buying a home after evaluating your finances.
Search for the best mortgage options.
Not only banks but also various NBFCs lend money for home buying. You can make comparisons of the home loan rates offered by different institutions. These days, it is very convenient to do it online. Choose between floating and fixed rates, and compare the rates at which the different institutions are lending you.
Check for the amount for which you are eligible for a home loan. That may vary from lender to lender. Also, it will give you an idea as to how much you need to pay from your savings. You may note that you need a good CIBIL credit score to procure a home loan.
Pick the best lender.
Additional Costs
There are quite a few hidden costs when you are buying a home, such as stamp duty and registration charges, brokerage, GST, etc. You also spend money on the interiors of the home. Figure out the hidden costs and include these in your budget; these might come as a shock when you make the purchase.
Pick the best Developer.
More than the project, it is the developer you should take care to choose. After all, the quality of your home, maintenance of the project, and timely delivery of it will depend on the developer you choose. Pick a project from best real estate developer and builder who holds a good track record and reputation. You may perform online research and check customer feedback. You can also take references from your friends and relatives when buying a home.
Real estate agents
Don’t feel shy about taking help from real estate agents when buying a home. They have a fair idea of all the projects and properties available in an area and can tell you exactly where you should visit as per your budget. The agents help you crack the best deal and assist you with all the paperwork and formalities required later.
Compare projects!
When buying a home, compare different residentail projects before making the final decision on the location, and stick to it; it will be easier to locate projects matching your budget and requirements in a particular area. Then, make a comparison based on layout, amenities, developer goodwill, etc.
Project Amenities
Amenities offered by a project play a key role in the home-buying process. Check the other facilities such as parking, power backup, and others. Remember there would be a certain fee you would need to pay to use these facilities. Ensure you know about these beforehand. You would not be using all the amenities in the project; list down those that you need at any cost.
Location Infrastructure
Check the current infrastructure status of the location you decide. Look for an area that is developed or developing so that stay is comfortable and convenient. Check for the presence of hospitals/ healthcare centers, academic institutions, markets, entertainment options, banks, etc.; everything you need daily must be easily accessible. That will make a lot of difference when you live here.
Tax Benefits
There are several tax concessions applicable to a home purchased on a home loan. As per section 80C, you can get the concession of up to Rs 1.5 Lakh on the principal portions of the EMI and up to Rs 2 Lakh on the interest component of the EMI applicable under section 26.
Buying a Home is not easy. This handy guide will help you make an informed decision before making this big-ticket purchase.
