How To Prepare Yourself Before You Buy Your First Home

Buying your first home can be one of the most important decisions of your life. It’s not enough to just find a residential property in India that fits your budget. It’s important to find a home where you can see yourself living a happy and peaceful life. The process can be quite tedious and gruesome.

Here is a list of things you should watch out for while buying your new apartment in India.

1. Hire a professional realtor

Let’s face it. No matter how well versed you might be with the real estate market, a professional would be able to guide you properly through the process to find the right place. They would be well informed about technicalities and glitches in the current market situation, ensuring that you get the right deal on the residential project in India.

2. Estimate your budget

There is a wide range of homes out there that can fulfill your needs, but having a price range will help you make the decision a lot faster. The mortgage on your loan should stay between 10-15% of your monthly salary, so as to be able manage your finances better.  It will also help you from not being stuck on that dream home that you cannot afford. Even though you might be able to get a bigger loan, that will only put you on a higher mortgage, which might chain you down from spending on that special vacation or a birthday gift for your child.

3. Make a list of priorities

Make a solid list of things you are looking for in a prioritized manner, putting things such as the number of bedrooms and bathrooms at the top, and balcony and such other aspects down the list. This way, when you come across different possibilities for purchase, you can refer to the list and save the trouble of looking at homes that do not fit your criteria.

4. Apartment or plots in India

This can be a tough decision to make. Both have their pros and cons. While a home in a plot can give you the feel of a “real home”, it comes with complications in paper work and land disputes. This might not seem like a problem at the time of purchase, but it can cause a lot of headaches down the lane if you are trying to sell. On the other hand, apartments in India can cost you lesser for the same carpet area, and save you the hassle of confusing paperwork. Nowadays apartment complexes come with several free amenities such as swimming pool, parks and playgrounds.

5. Housing loans

The most ideal way to finance your home would be to take a loan from a bank, rather than self-financing. Most banks have a special system to investigate the builder’s credibility before approving the loan, thereby giving you an extra edge regarding the safety of your purchase. Most banks have different schemes with floating interest rates which are as low as 9.90%, with a payment option for 20 years. Even if you have cash, taking a small loan is recommended.

6. Do your homework

It is easy to buy a home these days with many new builders offering a wide range of different options to choose from. Most of them might seem legitimate, yet it is very important for you to do a thorough background check on the builder before you make the final deal.

7. Hire a home inspection team

This is particularly useful if you’re buying a home with a plot, new or not, because the durability and the sturdiness can be dependent on many different aspects. Skills of the laborers and the contractors’ credibility can affect the structure of your new home. It is therefore important for you to hire an inspector to thoroughly check the home you are buying to find any faults, thus giving you a chance to fix it, or negotiate the price to include the maintenance charges.

8. Decide on the Location

The location of your new home is extremely important, as it is one of the few things about your residence that will never change. Accessibility to your workplace or your children’s school should be considered, as well as common amenities such as supermarkets and malls.

9. Consider the resale value

Even though you plan to stay in the same home till you grow old, there is a very high probability of you moving for work or some other reason, thus the value of resale apartment in India is an important factor. It can never be estimated exactly, but the location and possible future developments in the area can be considered as factors to help you predict the future resale value of your home.

10. Have patience

Builders or owners put pressure on new property buyers to purchase a home that they are not completely satisfied with. You then tend to make rash decisions based on incomplete data, plus the urge to just get over with it. But in the long run, you will regret such a move. Therefore, take your time, explore all the possibilities and make a well-informed decision.

(The writer has spent the past nine years reporting on many sectors, including energy, infrastructure, technology and telecommunications)