Information that must be collected before Home buying
Real estate is on the upswing again after seeing a low phase in 2009. Prospective home buyers who missed out on booking homes last year still have a chance to take advantage of the reasonably so far stable real estate prices. However, that is not to say that one rush in to grab what may seem like a good offer. We list 10 common mistakes that most first time home buyers
Must know how much you can afford to spend – Budget:
One needs to know how much one can afford to spend on buying a home. This means not just knowing what you can put down as down payment but also what you can afford towards your monthly installments on your home loans.
Not being conversant with building Jargon:
Builders often use terms like built up and super built area according to which you are charged on a per square foot basis. The actual area that you will be occupying is carpet area; ideally should seek to purchase a home only on the basis of square foot area.
Purchasing a home having all the required clearances by doing some background research:
The best way to confirm if the building you are considering purchasing a home has all the required clearances from the municipal corporation. Use the Right to Information Act, and ascertain if the project has been cleared for water supply, has the builder got the required FSI etc. from concerned Muncipal Authority.
Get a pre-approval from a bank for home loan:
Getting a pre-approval from a bank for a home loan will give you a lot of clarity of exactly what your budget should be which in turn will help you decide on the area in which you can afford a home.
Not confirming parking and other amenities:
Prior to purchase, one needs to ascertain whether parking will be allotted for each flat owner, whether the builder will arrange for electric meter, what other amenities are being offered, whether these are included in the hidden costs etc.
Not considering the resale value:
Ultimately purchasing a home is a major investment and one has to consider the returns on investment. There may be a time when you may just want to move and sell your home, take into account the potential resale value before making a decision to buy. This could be based on prospective development of the area, good connectivity amenities etc.
Not reading the fine print:
Before signing on the dotted line it is best that one presents the papers to a lawyer for review to spot any potential loopholes, else you could find yourself waiting forever for a completion certificate or get caught in the trap of paying on a time wise basis rather than on the basis of project comparison.
Not considering the locations:
Like every property purchase the key is location – if you find your dream home and later figure out that it is far from basics like markets, local transport hubs, schools, medical facilities etc then that home will prove to be more of a burden than a boon. Also figure out the cost of commuting
Not communicating with your real estate agent:
It is essential that one finds that right real estates agent who understands your needs and is able to guide you best while helping you with home hunting.
Not factoring the monthly outgoings:
The pleasure of owning a house will soon dampen if you have not previously inquired about the monthly outgoings towards maintenance charges etc.