7 Things You Could Do To Improve Your Chances Of A Property Purchase In 2018
For one reason or the other, all your plans to buy a property fell flat. In the coming year, however, you would want to become a property owner at any rate. What can be done to make that happen?
Let us look at seven ways in which your chances of buying a property in the new year would remarkably improve:
Score more: In case you are a salaried employee who has been finding it hard to get a desired amount of loan owing to a poor credit score, start immediately to make amends. The first step towards that is pre-paying all your previous loans. In case you are servicing other small loans such as auto loan or personal loan, focus on pre-paying them as soon as you can. Use your annual bonus to make that happen. You could also ask your family members to assist you in unburdening yourself to be ready for a bigger responsibility. Do not be surprised if they seem quite warm about the idea. Which parents would not find it utmost satisfactory that their son/daughter is going to be a property owner? They would also be unusually happy to see that their child is all ready to shoulder big responsibilities.
Do your homework: One of the biggest challenges the real estate market is facing today is the rising burden of unsold inventory. If media reports are to be believed, the government is also planning to impose an 8-10 per cent tax of housing stock lying for more than a year with a developer from the next financial year. In such a situation, many developers may go for distress sale. Work this to your advantage. Properties, which were once not affordable for you may be so in the coming year. To do this, a thorough research would be needed. Start working already! Here is a tip to get you started. Data available with PropTiger DataLabs show Ahmedabad and Chennai have the biggest share of ready-to-move-in inventory stock lying across nine major cities of the country.
Switch jobs: In case the chances of you getting any substantial rise in your salary with your current employer look slim, try to find a new employer. However, this must be done with an aim to ensure that your take-home salary swells well. Do note here that banks do not take kindly to regular job hopping. Among the many documents, they would ask for would also be your salary slips of six months. This means you have to spend at least six months with your new employer before you are able to apply for a home loan. Work out your strategy accordingly.
Get your papers in place: Those who move to a new city often find it difficult to get an official identity proof for them. If you are living on rent, for instance, you may not be able to apply for several official documents that are necessary for home purchase. Start working towards that immediately. Using your rent agreement, you could apply for a voter's ID card and Aadhaar Card. It is relevant to mention here that the government has made it mandatory to link your Aadhaar number to your bank accounts. This means no property purchase will be possible without you having in your possession a unique identification number. In case you already do not have an Aadhaar card, apply for one.
Settle for less, if need be: When you go out in the market, you would not like to have anything less than the best. However, at this juncture, you may not be able to afford this luxury, considering your financial position. Now, this should not be a reason to defer your property-purchase plans. In the next five years when you are able to arrange that kind of money which this special property demands, its worth in the market may have multiplied. We all know this is a vicious circle. A better strategy would be to go for a more affordable alternative till the time you are able to get what you want. The worth of this asset you bought will increase with time, and could act as a means to buy that property you so desire.
Get your loan pre-approved: It would also be a great idea to have get a pre-approved loan. When sellers know you are in a position to close the deal quickly, they would warm up to you naturally. There is another advantage of doing this. You already know your price range, and would be zeroing on your options accordingly. A pre-approved loan is a great way to ensure you do not get carried away and burden yourself with more than you can handle.
Keep calm and stay cool: Buying a property is not your ultimate goal, making a great investment is! To achieve that, it is of utmost importance that you stay composed about the whole process. The market is full of discount offers and attractive schemes — this is true of home loans and property rates, both. You have to pick the best amid all this without getting cheated or duped in any way. There is a law in place now to ensure that that does not take place. Even then, you would not like a situation such as that to arise in the first place. Act accordingly.