So home buying is on the cards – you have decided to take the plunge and become a homeowner. That’s a big move, lot of things are going to change, lots of decisions will have to be made. Not sure how to go about it? Here are some pointers that can make the process easier for you:
- What’s your type?
Are you a villa person or would you rather go for a flat, co-operative society, town house, or condo? Make a choice based on your financial capacity, housing needs, lifestyle, and future plans. Knowing what works for you can make house hunting that much easier.
- Have you done your research?
Know the game well before you get your hands dirty. Study the current real estate market trends. Visit some online realty websites to figure out prices of a specific type of properties in different localities. Before finalizing a project, check if it is RERA approved and has all documentation in order. Also, find out how much property tax you will be entitled to once you own the house.
- Do you have the necessary funding?
Purchasing your dream house will remain a dream without the right financing. The first step is to approach a bank or financial institution to avail a home loan. Different banks may have different interest rates, so it is important to look around and compare. The loan approval and amount will depend on your credit score, spending capacity, foreseeable expenses, and your current assets.
Home loans are generally issued on mortgage. In the case, the property on which you are acquiring the loan becomes collateral to secure the loan. Interest rates in mortgage loans are lower compared to loans without mortgage.
- Fixed or floating – what type of interest rate works for you?
Before you finalize a loan, consider the type of interest rate. A fixed rate home loan may have slightly higher rates, but more stability over the years as the rate is fixed. A floating interest rate is lower, but is risky as it varies over the years based on market conditions.
- Is it the right time to buy?
When it comes to real estate purchases, timing is everything. Research the current real estate market trends. Is it a buyer’s market or a seller’s market? Pick a time when there is a lot of competition and the sellers are willing to go to great lengths and provide massive discounts. Figure out when the government policies and regulations roll in your favour. For instance, the government has currently confirmed there will be no rise in property taxes in the near future. So, it is a good time.
- Are you getting a good Return on Investment (ROI)?
At the time of purchase, while you may be looking at a property as a place to stay, it is equally important that you consider it as an investment. Any buy that won’t fetch you returns is a buy not worth it. Look for quality of construction, the utility factor, model, neighbourhood, and locality as factors that will impact the future RoI of your house.
- Do you need and have an agent?
A great deal in real estate boils down to involving the right set of people. If you are unsure of the workings of the real estate market, it would be a good idea to get an agent to negotiate the deal for you. Define your needs clearly and offer them a commission to negotiate your end of the deal.
- Do you know your rights?
Don’t agree to anything until and unless you are completely satisfied – speak to the developer, get site inspection done, ask for as many site visits as you need to make a decision, negotiate well.
- Have you done all legal formalities?
There are number of legal elements to verify before you sign the deal.
- Check if the project is registered under RERA
- Check is the property is free of any legal debt
- Check if the builder has obtained an NOC from the respective authority
- Have you considered homeowner’s insurance?
As a homeowner you need to consider insurance to protect against property damage. Choose an insurance plan that is right for you and has you covered for most of the possible damages.
Now that you have the road map with you, you can begin the most memorable journey of your life. So what are you waiting for, get on to Zaasna and start finding your dream home.