Every individual dream of buying a new home. No doubt, buying a new home is the most significant financial commitment; therefore, you should be well-prepared to ensure the buying process is smooth. Read further to know how you should go about purchasing a new home.
There’s nothing more exciting than moving into a new home. A new home is a mark of new beginnings and new memories. But jumping into the home buying wagon without proper planning and preparation can ruin your whole experience.
Different people have different reasons to invest in a new home. It would help if you determined your purpose; whether you want to use the home for yourself or if you wish to purchase it for investment purpose. Before you begin the buying process, you must consider the following factors:
Budget & Home Search:
Whenever you’re buying a home, the first thing to do is have a fixed budget in mind. This will not only help you narrow down your choice of the house but also keep your finances in order. Once you have the fixed the price range, you can start searching for a new home based on your location, either through online sources, or hire a real estate agent. Choose a home in an area that has excellent infrastructure facility, is closer to your work, and has the potential of development in the future.
Type of Property:
Generally, you can choose from three types of properties – Under construction, Read-to-move homes and Resale. If you a first-time buyer, you should look for ready-to-move properties as the possession is immediate. If you’re ready to wait, you can choose to invest in an under-construction property. Here, the risk factor is the possession date, which could get delayed. Also, you must check developer approvals, RERA number and loan availability.
Inspection & Negotiation:
Inspect the property location – construction quality, interior quality, foundation, property amenities, safety features, water supply etc. If you’ve decided to buy the property, know the developer’s track records and visit their other projects to check if there were any issues and the quality of construction. Negotiation should be your priority when finalising the purchase. Begin negotiating at a lower amount so as you can get some discount on the market rate. You can talk to the locals in the area to get an idea of the price range of properties in the locality. This will help you bargain with the developer and get the best deal.
Once you have decided the cost, location and property type, the next step is to check eligibility for a loan. When you’re applying for a home loan, you should know about the loan process. Different lenders have different procedures, eligibility criteria, and documentation. Ask the lender about their process and choose the one that has a hassle-free process.
Know about the costs involved
Availing a home loan includes various costs such as processing fees, stamp duty, registration fees, GST, etc. You must know about the costs involved before you sign the agreement. The costs may also differ based on the type of property you are purchasing.
If you are purchasing an under-construction property, the GST is around 5%, while for affordable properties the GST is 1%. Another hidden cost associated with home buying is the parking space which can go up to lakhs based on the location. Besides, builders also charge a maintenance cost, wherein you need to deposit a fixed amount for the property’s maintenance purpose.
By following the above tips, rest assured, buying a home in 2020 it will become simple and easy.