Buying one’s first home can be a trying experience. Getting
confused or feeling lost is only natural, unless you have a ready reckoner
close at hand. Today we take you through all the information you need to have
when you are buying your first home.
Get online
In this highly digitized world, the search for everything
from groceries to gadgets happens online and real estate is no different. Most
buyers in the 25-35 age group begin their search online. Has made it easy to
filter searches according to your requirements, budget, and location
preferences. It is a good idea to go through all of these portals and shortlist
properties that you would like to see personally.
Once you have zeroed-in on the properties that you would like
to visit, probe further and read up on the developer, its reputation.
Check out things like delivery time, payments, and delays it
has been responsible for. Use your networking skills to reach out to recent
buyers in the properties that you are interested in and get their opinion as
well.
Making the choice
While visiting the shortlisted properties do a thorough check
of the neighborhood.
If you have young children or hope to have a family in the
near future, check out education facilities in the area. Proximity to
hospitals, schools and colleges, market areas, amusement and entertainment
options should be considered. The other important factor to consider is the
distance from your workplace, railway stations, and airport.
Budget requirements
The first things you need to remember while buying your first
property is that you should not under any circumstances overshoot your budget.
Its human nature to be aspirational, but make sure that your
loan does not become a burden for the rest of your life. Ideally if you are
planning to buy a house, you should have been saving up for its down payment at
least three to five years ahead.
For young people who harbor dreams of owning a home, start
investing in equities in order to get the best inflation adjusted returns. If
you do not have the time or expertise to invest in equities by yourself, it is
best to take the mutual fund route and link your investments to a goal like
down payment of your first home. This will keep you focused on your goals and
help you make disciplined investments towards reaching your aim fruitfully.
While saving or investing for a house, you also need to bear
in mind that you need to maintain a good credit history as your credit score
will be taken into consideration, when the lender assesses how credit-worthy
you are.
Maintain a good track record of servicing your previous or
current loans and make it a habit to repay all your credit card outstanding
within the billing cycle.
EMI factor
Further, when you are taking a home loan, make sure that its
EMI does not exceed 40-45 per cent of your monthly income. Aim to increase your
EMI repayment over the tenure of your loan as your capability rises with an
annual increase in your salary.
Maintain a contingency fund that will take care of your Mortgage Loan EMI for at
least 3-6 months in case your cash flow is interrupted by an emergency.
Paperwork
Once your financing needs are taken care of, it is time to be
aware of your rights as a prospective home buyer. The recently passed real
estate Bill safeguards your rights as a consumer and ensures efficiency in all
property-related transactions with the mandatory registration of all projects
with local governing bodies and the establishment of the Real Estate Regulatory
Authority (RERA) that is expected to ensure timely completion and hassle-free
handover to the end customer.
[Source: http://www.thehindu.com/todays-paper/tp-features/tp-propertyplus/checklist-for-firsttime-buyers/article9170022.ece]
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