Buying a home in India especially for a first time home buyer is both financially and emotionally a big decision and a major milestone. A dream for many may also be a daunting task with so many variables to worry about. In order to help you navigate a complex real estate market of India, we have narrowed down the top 10 tips for first time home buyers:
Understanding Finances
- Determine how much you can spend on buying a new home. This budget would depend on your monthly household income, your expenses, existing debts or other financial commitments.
- Getting pre-approved for a loan gives you a good picture of your average financial ability or budget for the new home. Keep in mind that it is wise to take out a loan for less than what you would be approved for.
- Considering the cost of living and the inflation is essential to keep up with rising expenses along with paying EMIs on your new home. Expenses like maintenance, property taxes and bills are to be factored in while calculating cost of living.
- Explore loan options with multiple banks and financial institutes and see which best suits your requirements and has the best interest rates for you.
- Save for a down payment in the meantime and also check if you are eligible for any government backed schemes like PMAY (Pradhan Mantri Awas Yojana).
Diligent Research
- Keeping in mind the location you are interested in, explore the different neighbourhoods for lifestyle, amenities, infrastructure, communities and commute time.
- Check for different property types available in your budget in these neighbourhoods: a villa, an apartment, rowhouse, affordable housing, etc.
- Check for the convenience of essential amenities nearby like good schools, hospitals, malls, shopping markets, groceries, public transport, etc.
Choosing a Reliable Real Estate Developer or Consultant
- Hire the local expertise of a real estate consultant company to help you research the best properties in your budget and get you the best discounts if you are unsure of the market.
- However, if you can research reliable and trustworthy real estate developers having projects in the neighbourhood of your choice, you can explore the properties, negotiate directly and get a great deal on your new home.
- One of the most important tips for first time home buyers is to choose the right developer who has your best interests in mind and a history of delivering high quality projects and promises on time like Vasupujya Corporation.
Ensuring Legalities
- Ensure the property is legal, land is owned by the developer and the RERA website shows no litigations on the property you are interested in.
- If you are buying a resale property, verify the title and the property’s ownership history.
- Check if the property has all the necessary approvals and permissions to build.
Negotiating Wisely
- Using online tools, consulting experts or asking friends/family in the area, get a fair estimate of the property value.
- Don’t be afraid to negotiate the price or other terms of the sales agreement.
- Factor in costs such as stamp duty, registration fees and brokerage charges (if any) while negotiating the final price.
Home Inspection
- Conduct a thorough inspection if the property is ready for possession for any structural issues or defects or damages.
- If under construction, then do timely checks on the construction quality and progress and ensure what is promised, is being delivered.
- Discuss any issues or concerns with the seller or developer and negotiate a resolution.
Documentation & Paperwork
- Prepare all the documents needed for loan approval, property registration and other legal formalities.
- It is important to familiarize yourself with the latest guidelines for these documentation processes to avoid delay and future hassle. Ask the developer’s team to assist you and don’t hesitate to take help from recent home buyers in your family/friend circle.
Post-Sales Consideration
- Pay your property taxes on time.
- Take pride in your new home. Decorate and customize your living space to your comfort, personal style and preferences.
Undoubtedly home buying is a complex process. Keep in mind the above tips for first time home buyers and do your thorough research to make an informed decision. Enjoy a smooth home buying experience!
