Are You Ready To Buy A Home? Begin With These 8 Questions
You might have the money to make an investment, but investing in real estate is a complex transaction and requires expertise, experience and mettle for execution that's beneficial to you.
The time might be ripe for a property purchase in a buyers' market, but before you think you are ready, ask yourself these eight questions:
1. Are your savings large enough to buy a car?
That is probably how much it takes to make the down payment for a house.
2. Do you save at least 40% of your salary every month?
If yes, you can take care of the EMIs once you buy a home.
3. Do you have a credit score good enough to impress a banker?
It can help you negotiate interest rates with the bank.
4. Do you have all your personal and financial documents in place?
No bank will give you a home loan if you do not submit all the necessary financial documents. Many people start procuring them after or right before they start the process of applying for a loan. It is wiser to get them all in place before you make the decision of property purchase.
5. Can you handle the pressure of looking at properties almost every weekend for many months at a stretch?
This demonstrates that you have enough perseverance to chase a real estate investment. Finding the right property can take months and even years.
6. Are you well-informed about the property rates in various locations in the city you want to invest in?
This will ensure that a real estate agent won't embellish the advantages of a location. Researching on the property rates of a location over a period of time can also help you shortlist the best property in your budget.
7. Do you know why you are buying the property?
Realizing the purpose of your investment can give a perspective of the extent and kind of bet you should be taking. Is it for residential purposes, rental purposes or resale purposes? Having an answer to this question will help you decide on a suitable location for your property and the kind of money you need to spend.
8. Is the real estate market likely to appreciate well in the next five years?
A good home is only as good as its estimated worth. Though very few buy it simply to sell, buying a home in a location, where property prices are appreciating, always helps you know the future of your investment.
If you are unable to give a satisfactory answer to half of these questions, wait before you think about buying a house. If you went through this list very confidently, log in to www.proptiger.com immediately.
(Katya Naidu has been working as a business journalist for the last nine years and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities)