Buying a property requires a lot of time and effort. This is not an easy affair, especially for first-time owners. Every buyer has a particular budget range and they stick to their designated price range, within which they will seek to purchase the property or home. The Indian Real estate segment is growing at a fast rate and buyers have a lot to choose from the existing market. If you are a first-time home buyer, this article will shed some light on the various steps you need to follow before you purchase your own home.
#1. Plan your budget accordingly before your purchase
This should be actually done even before you start hunting for the property. It is extremely vital that you calculate your budget and this information will help the brokers and the agents give you enough options to choose from. Once you decide the budget, you will be able to focus on other aspects such as locality, builder and the property value according to your estimates. This is the best possible way to prep yourself financially before you step up on investing in big projects such as owning a home.
#2. Analyse and evaluate your savings before investing
While you decide on finalising your budget, you should thoroughly examine and evaluate your savings. This will provide some clarity and offer a clear picture of how much funding is available and what would be the maximum debt required to be taken in the form of a loan. You also need to do a detailed check of the savings that could be easily liquidated and compare it with the ones that require time to liquidate. For instance, the savings in bank accounts are easy to liquidate compared to any investment in stock or government securities that might have a lock period. You must get the estimate of what fund would be the available from each source and then calculate the actual savings available.
#3. Define and decide what your home needs
Preference for homes differ according to the individuals, some would prefer gated communities or apartments whereas others might want independent houses. Therefore, it is highly crucial for you to finalize what type of home will suit your needs and start preparing your estimate. Nevertheless, over the past few years, many are choosing apartments as it would be more affordable and requires less time for maintenance. The advantage with apartments and gated communities is that the maintenance charges are shared by all the residents.
#4. Decide whether you want to buy a fully built home or construct one
One of the most confusing decisions that new owners like yourself have to make is whether to go for a fully constructed home or purchase land and then construct your home. If you are purchasing land, you might come across some legal issues which are tricky to negotiate, and on top of that, you have to examine each and every tiny detail right from the foundation materials to the final complete interior work. This is ideal for those who have enough time and money to spend until the final construction is complete. However, the problem is many are busy with their work schedule and hardly have any time for themselves. During these situations, the best choice is to purchase and move to a house that is already constructed and ready to move in. Many apartments for sale in Thiruvanmiyur come completely furnished with all the amenities included.
#5. Finalise your location
Based on your budget, convenience and the amenities you should be able to pick up the top locations and choose the one which is the best and the most affordable from that list. Generally, employed couples would prefer locations that would be closer to their workplace and something within the city limits. Whereas elder and senior couples would prefer locations that are on the outskirts of the city, away from all the hustle and bustle of the city life. Aside from that you also need to check the accessibility to hospitals, schools, banks and even shopping malls before you finalise the location. Check for resale and rental values as well according to the locality. There are several new apartments for sale in Medavakkam Chennai. Properties in Medavakkam and Thiruvanmiyur generally have a high rental value.
#6. You have to improve your CIBIL Score
Owning a house is the ultimate dream for many Indians. More than 76% of the Indian population avail loan options. This is primarily done to get yourself some tax exemptions and it will help in the possession of the property immediately even if you don’t have full cash. If your credit worthiness is low, getting a loan approved will be difficult and the interest rates and other charges will be very high. You can improve your CIBIL score by reducing the outstanding debts by making regular and timely payment of EMIs and by avoiding applying for too many loans.
#7. Find out how much mortgage do you require
If you are planning to avail a home loan, then your bank will require a mortgage or security for approving the loan amount. This is done basically to mitigate the loss in case if you fail to repay the loan amount. With home loans, not many banks will require a separate mortgage as your property itself will be with the bank. Only after you complete paying back the full loan amount, the ownership will be transferred from the bank to your name. It’s better you check the bank you are applying to on how much they need a mortgage and how much that amount would be.
Buying your first home is one of the most important decisions in your life and as a buyer, you must ensure that you follow all the necessary steps mentioned above. Create a checklist for your own reference, which would help you track the progress you are making in your own house. Follow these simple steps and buy your first home with confidence.