Buying a home is a dream for many. It is both a financial and emotional investment. People work extra hard to finally be able to purchase a home of their own. If you have bought real estate before, you know it can be a daunting task. You need to do a great deal of research before investing such a large amount of money. From deciding on the type of property to getting the right home loan, a home buyer needs to go through a lot. And if you are a first-time home buyer, you might not know what areas you need to cover. Knowing all the requirements in advance is the best way to go. That is why we have curated this guide for first-time home buyers to make the process less ambiguous. Let’s take a look at the things you need to check before buying a house.
- Type of Property
The first step is to decide what kind of house you want. Villas, apartments, bungalows, penthouses, and many other types of residential properties are available on the market. In bigger cities, apartments, or flats, is one of the most common types of property people invest in. You must decide what type of house you want based on your needs and budget.
Depending on the needs of the family, select a size that suits you best. The size is generally defined by terms like built-up area or carpet area. For more transparency, RERA has made it mandatory for builders to disclose the size of the property in the carpet area.
Another thing to consider as a home buyer is whether you are going to live in the house or buy it for investment purposes.
- Budget and Financial Planning
Another very important factor for first-time home buyers is budgeting and finances. Depending on the type of property, their prices may vary. What you need to do is assess your finances. Know your monthly income from all sources as well as your expenses. Consider your debts and liabilities. Check your savings, investments, and emergency funds. These points will give you a fair idea of what is affordable to you. Make a realistic budget based on this.
As a first-time home buyer, you should also look into various government programmes and tax breaks. You can check the eligibility criteria for the Pradhan Mantri Awas Yojana (PMAY). The government also provides tax concessions under Section 80C. Knowing this beforehand can help you save a significant amount.
Another thing to consider while budgeting is the additional costs involved in the home-buying process. These costs may include:
- Stamp duty and registration charges
- Maintenance charges
- Preferential location charges
- Amenities charges
- Property Search
Choosing the best location is important. Location determines the ease of living. There are a few things a home buyer should consider, like
- Quality healthcare and education near the location.
- Distance from the place of work, an airport, a railway station, markets, etc.
- Pollution in the area.
- The greenery around the area.
Another role that location plays is the return on investment of the property. The price of the property may increase depending on the location. Always look for the future scope of development and upcoming infrastructure projects in the area. Other things to look at include government policies and commercial development. The price of the property may vary depending on these factors.
- Choosing the Right Builder
Once you have finalised the location, the next step is to look for a reputed builder. Compare the builders working in the area of your choice. You can also talk to the other residents or customers and gain insight from their experiences.
As a home buyer, these points can help you choose the right builder.
- Past track record
- Quality and type of the projects done in the past
- The structural quality of the projects
- Number of finished projects
- Number of ongoing projects
- Approvals and licences
- Amenities included in the project include parking, security, power backup, etc.
- Delivery time
- Post-sale services
- Selecting the Right Home Loan
Buying a home is costly. Not many people can pay upfront. Thus, you might require a home loan. You can talk to your bank or financial advisor regarding this. They can provide you with details and comparisons on home loans, interest rates, and other offered features. There are many tax benefits to home loans as well. One tip is to keep your repayment tenure short while availing of a home loan. This will save you money on interest.
A first-time home buyer needs to go through many factors before closing the deal. Real estate is an investment that requires heavy research. It is also a safe investment that grows over the long term. Thus, it becomes necessary to understand the complete process and be well prepared. Deciding on the type of property and having a financial plan are where you should start. Factor in all the additional costs that may occur. Choose the home loan that suits you best.
For more information on these guides and your other finance queries, you can reach out to us at Piramal Finance. Our experts will guide you through your financial journey and make it simpler.