A buyer needs to understand and follow the below listed pointers in order to make buying a property an easy and seamless process. This will eliminate any hassles that one would usually encounter and is the ideal process to follow while looking for a dream house.
SELECT THE LOCATION
While most young, well-educated professionals are likely to be doing short stints in several cities, the most important parameter when buying the first home should be 'Is this the city I want to live in?' If you've zoned in on the city then figure out whether you want a modern, spacious housing that may require a commute or something smaller close to the metro core.
DECIDE YOUR BUDGET
When you're young, you have a long earning years ahead of you but the current savings are probably limited. Which means your dream house is pretty much out of the question right now. But make a start. But hold on before you start getting hopeful. Budget for your house considering payments such as your own contribution, the fees charged by all the financial institutions, upfront payment, agent fees, stamp duties, transfer charges, parking charges, clubhouse membership, interiors, etc.
If you choose to use an agent, then consider:
An experienced real estate agent helps you to take that informed decision. He knows the nuances of renting real estate in the neighborhood. He has all the answers to your questions and makes sure that your interests are taken care of. The Real estate agent saves a lot of your time by first understanding your exact requirement and then involving you only when he gets the exact match.
CHOOSING THE PROPERTY
Relocating your family today is not an easy task it’s a challenge. One does not change his house or rather relocate regularly. Hence you need to take guidance from an expert who has in-depth knowledge about of the vast locations & should be sound enough to provide a locality or residential complex of your liking. Hence it is essential for agents to know their client’s needs and provide them solutions accordingly.
Relocation is not just moving to a new house or a new city or a new place. With convenience what one looks for is what facilities are available in the surrounding areas – schools, markets, hospitals, and theaters & close proximity to their work place. If a family is relocating to Mumbai the first preference should be given to properties that are within walking distance from children's new school. This is important because the city transport and communication gets affected in monsoon. The second priority should be given to the place of work in terms of the distance from the workplace. Certain locations are popular because they are located close to the commercial hubs of the city and have quality schools in the vicinity and buyers have numerous choices of apartments in terms of quality and price.
In terms of size a typical 2BHK area is about 1000 square feet built up area. This is ideal for newly married couples with perhaps a single child. A 3BHK size can range between 1400 square feet built up to 2000 plus square feet built up and is ideal for larger families or families who have frequent guests.
A newer building can save huge renovation costs as most apartments have modern bathrooms with quality sanitary ware , modular style kitchen, imported flooring, air conditioning etc.
TAKE THE RIGHT LOAN
This is a big one. Loans belong to complicated world. Let's break it up into two parts to make it less intimidating:
A. The Selection
I. To start with, you can get a loan for upto 75% of the property value. This means for a house worth Rs 1crore your loan component can be about Rs 75 lakhs.
II. Most important are those three little letters- EMI. Your budget for buying your home should be based on your household budget and how much money you can afford put in an EMI. For a single person, the EMIs should not exceed 60-65% of your net income and for a married person the maximum is 35-40% of your joint income.
III. We give you three handy tips for selection
IV. To increase the loan amount that you can get, take a loan jointly with your spouse so that both the incomes are clubbed to determine the gross repayment capacity.
V. While choosing your financier do your homework and keep sanctions from at least two ready with you as a backup in case the first one throws up some unpleasant surprises.
VI. Go for a step-up loan where you will make lower repayments in the initial years and higher ones as your income increases. Find out all about variable EMIs
B. The repayment
There are two ways you can choose to repay your loan -- conservative or aggressive. The choice depends on your individual financial situation and goals. You can choose longer terms and lower EMIs or vice versa. You can also choose lower loan amounts or take a joint loan. Use our EMI calculator to find out how much you will pay.
Home loans are not all bad news, there's good news too – home loans are great for tax breaks. If the principal component on your housing loan is Rs 1 lakh (Rs 100,000) and you make no other investments you will get the full advantage of it. You may end up getting a double benefit; a deduction of up to Rs 1 lakh on the principal amount and Rs 1.5 lakh (Rs 150,000) on the interest component.
In closing, you'll probably agree that buying a home is no cakewalk. But at the end of a long days' work when you can sit back and relax in a space you can call your own then it will seem well worth the effort.