When it comes to buying a home, everyone has priorities. The purchasing procedure is challenging, drawn out, and susceptible to interruptions. Setting priorities might help you navigate the process without paying attention to some of the important components to you and your family.
Additionally, your agent will need to understand your priority list. Knowing which features are most essential to you will allow you to compare homes that suit your needs and eliminate homes that won’t.
A real estate agent CRM system can be instrumental in this process, providing detailed insights and analytics about various neighborhoods, aiding in making a more informed decision.
This post will discuss things to consider while purchasing a new home. Each will have a varied level of value for different customers, but they are all still significant factors to consider. If you haven’t seriously thought about it, now is the time.
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1) Know your budget and don’t exceed it
Knowing how much you can afford to spend on a home is the first step in buying one. If you have other loans or a lot of other financial obligations, you should sit down and determine how much of your take-home pay you can truly spend on a property. There will also be expenses like Online Home insurance and monthly flat maintenance.
It is not advisable to spend more than 30% of your take-home pay on loans. You should also check your bank account balance for savings and determine whether you can add to your monthly income with more funds or sources of income.
Avoid buying a home that is beyond your price range. Some people acquire homes with the intention of later selling them to pay off their loans and enjoy earnings. The possibility of a market crash makes this a perilous choice. You should purchase a property that you can comfortably afford right now, not later.
A house that is out of your price range will require you to struggle with money for several months before selling it. You won’t have enough money to live each month comfortably, and you won’t have the means to deal with an emergency.
2) Analyse the Location
Buyers seek out locations that are convenient for their most frequented destinations (work, education, shopping, leisure, places of religion, friends, and family). Look for convenient access to major thoroughfares and assess traffic volume.
Some owners would pick the closest accessible property if there was a park, swimming pool, or recreational area nearby. Some people prefer living in calm areas, while others prefer to live on the main street. Discuss your choices with your agent, and find out if specific lot locations result in a higher buying price.
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3) Check the carpet area
Avoid being seduced by the per square foot bait that developers frequently use to entice buyers. In order to enhance the area per square foot, builders frequently incorporate the building costs for the lobby, shafts, lift space, wall thickness, staircase, etc., in their pricing.
The term “super built-up area” refers to this inflated specification, which is typically 30% of the home’s real usable space or carpet area. To discover the precise size of the space you will be using, look up the dimensions of your living room, bedroom, bathroom, kitchen, or balcony on the building plan. You can decide based on this information and bargain with the developer for a fair fee.
4) Resale and Rental Value
It’s crucial to account for the house’s potential rental and resale values. Not only for people who are primarily investing in real estate to rent it out or resell it, but also for those who typically aim to buy a home and live in it for a considerable amount of time, possibly their entire lives. You must take future financial benefits from the property into account while choosing a home. Therefore, it’s imperative to understand the area where the property is located thoroughly.
You can perform research around the neighbourhood to assess the existing infrastructure and learn if any future development plans, such as those for schools, motorways, hospitals, shopping centres, etc., are being considered. Keep in mind that proximity is ideal. Because the ease with which you can obtain these items from the area will affect your ROI. Depending on why you choose to do one of the two, it will profit you in the long run by bringing in a decent rent or resale value.
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5) Check the Reputation of the Builder
Despite the numerous regulations that have been in place, the real estate business has recently gotten more competitive. In order to select the ideal home, it is essential that you thoroughly research the builder’s history and past. You may research the developer online or on his website to learn a lot about his reputation by looking at the projects he has completed in the past.
You may even look into the developer’s reputation with prior clients, their testimonies, and their experiences working with him. You can even verify the status of his ongoing construction projects. By understanding more about the builder’s honesty and trustworthiness through this study, you may make a prudent and safe purchase.
6) Compare Home loans
In addition to conducting research on the type of home you want to purchase, compare home loans on independent websites to reduce your alternatives. Use the Home Loan EMI calculator to know the correct EMI. If you choose a floating rate loan, interest rates start at 8%+ p.a. Fixed interest rates begin at 9%+ per annum.
Processing fees (0.25% to 1% of the loan amount), pre-closing costs (up to 5% on fixed-rate loans), and late payment penalties are other factors to take into account. You can estimate the true cost of borrowing by comparing every component of a home loan package.
7) Check all documents thoroughly
The RERA gives you a good picture of all the permissions and penalties the house you want to buy possesses. To make sure that everything is done lawfully and that you won’t be held accountable for anything, you still need to have all the documents examined by professionals.
There are several instances where builders or vendors have misled buyers by presenting fake paperwork, stealing their money, or lying about specific details.
You can invest with little concern if you hire a lawyer or real estate specialist to examine the paperwork, floor plans, approved blueprints, and other relevant documents. You don’t want to buy a house just to find out later that it is significantly less valuable than you thought it was or that there are so many problems with it that you can’t sell it! Even if you think it is a pointless waste of money, this tiny action can save you a lot of money and concern.
When you are prepared to buy a property, it is crucial to identify the factors that are most crucial to take into account. As we previously stated, there are a number of things to take into account, including your preparation, the state of the local housing market, and your familiarity with the key steps in the home purchasing process. You may ensure that you are attentive and mindful when you enter the world of homeownership by carefully considering some of these questions.
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