The leap from roaming about in your pyjamas in a rented apartment to doing the same in your own home is an expensive one. And if you don’t go about it wisely, all you’ll be left with is ruing a bad decision and a questionable pair of pyjamas.
Purchasing a house is by far one of the hardest things to accomplish. The task is so challenging at times that it is often deemed a matter controlled by the whims of destiny. While we aren’t exactly sure about what you should have done in your past life to deserve a house in this one, we can surely help you outwit your karma and take the right path towards purchasing a house.
It isn’t easy to sell your house if you happen to dislike it after purchasing it. Getting there was a herculean task in the first place, therefore, you must take precautionary measures right from the onset of your house hunting journey.
Additional Reading: The Beginner’s Guide To Taking A Home Loan
There are two things you need to do before buying a house.
- Thoroughly evaluate the property
- Run a background check on the builder
Let’s tackle the first point.
Thoroughly Evaluate The Property
Location and accessibility
Finding a beautiful house for a throwaway price is everyone’s dream. But, if it happens to be in the middle of nowhere, then it really doesn’t make much sense.
Make sure your home is close to places you frequent such as your office, your child’s school, hospitals, malls, public transportation etc. You also need to ensure that there is no municipal construction coming up nearby like flyovers or a road widening project since this could result in the acquisition of your property.
Take a walk around the locality
The best way to get a sense of your to-be-neighbourhood is to take a walk around. Nobody wants to live next to a dumping ground or a factory spewing acrid fumes and other wastes.
Taking a walk in the adjacent localities is a good way to gauge the location for safety, cleanliness and other metrics.
Utilities
Water shortage is a scare in almost all cities. Make sure the apartment or house you are moving into is well equipped with basic amenities like water lines and electricity. It won’t be a happy home if you have to wake up at three every morning to top all the buckets with water, and brave long electricity cuts when the world turns into an oven.
Additional Reading: How to Start Planning for Buying a House
Facilities and other perks
Many apartment buildings today come equipped with parks, grocery shops, a gym and even a swimming pool. If you are going to spend big then make sure that you get as many perks as you can in return.
Break down the cost involved in buying a home
Before setting a budget to buy a house, you must understand the various costs involved in the process. Other than the cost of the house you’ll also have to pay registration duty, stamp duty and post-possession expenses. Keep these costs in mind to avoid overshooting your budget.
Home Loan benefits
Even if you have sufficient funds to buy a house without the help of a loan, you might still want to consider taking a Home Loan.
It serves two purposes. First, the lender will undertake a round of due diligence to determine the authenticity and soundness of the property you are looking to purchase. If there is a kink that you’ve missed, your lender will catch it for you.
Second, you can claim tax sops on the principal and interest amount of your Home Loan.
Ready-to-move-in or under construction
The choice between the two is a difficult one. This is not to say that one is better than the other.
Under construction properties come with a lower price tag than ready-to-move-in homes. However, keep in mind that there could be a delay in the date of possession and the final look and feel of the house might fall short of the purchaser’s expectations.
A ready-to-move-in apartment is good for those who are looking to move into a place of their own immediately. The price is a tad bit higher, but at least you don’t have to base your decisions on imagination. By choosing a ready-to-move-in apartment, you can also start paying your Home Loan EMIs immediately, thereby reducing the overall interest payment towards your loan.
Additional Reading: 7 Things To Consider Before Buying A Second Home
Run a background check on the builder
The excitement of finally getting a house of your own could cloud your judgement. You may be so enamoured with your new house that you might not bother looking into the builder’s track record.
To make sure that your dream doesn’t come crashing down in the form of flaking plaster, a leaking ceiling or outright seizure of the land, you must evaluate the credentials of your builder as thoroughly and critically as the house you are looking to purchase.
Here’s what you must check:
Track record
While it isn’t written in stone that a novice builder will always do a bad job, buying a house from renowned builders gives you the surety of quality, service and facilities.
If you are purchasing your house from an independent builder then look at his track record – the years he’s been in business, number and quality of previously completed projects etc. This will give you a fair idea of what to expect.
Credibility
A builder’s credibility carries more weight than his experience. A builder could have built a 100 homes, but if most of his customers are unhappy clients, you’ll probably meet a similar fate.
A builder with a good reputation will stick to his promises. If you suspect your builder of making promises that sound too good to be true then perhaps they are. Being sceptical will save you from being tricked.
Additional Reading: Five Home Loan Truths Exposed!
Funding
Along with securing funds to purchase a house, you must also make checks to see if the builder has enough funds to keep the construction work rolling. A well-funded project offers the security of timely completion.
If your builder has been defaulting on loan payments, then that’s an indication of the builder’s funds drying up. Imagine your builder stalling the construction due to a lack of funds. Nightmare!
Legal Framework
A builder embroiled in legal cases is not a good choice. The legal cases in question might not have anything to do with the construction or real estate in general, but anything to do with the courts tends to be time-consuming.
Court cases can run for an eternity and are a drain on the financial and emotional stability of the person involved. This could hamper the builder’s ability to get the work done on time. There’s also the fear of bankruptcy.
Additional Reading: Home Loan Handbook: All Questions Answered
With Home Loan interest rates dipping and the government pushing for changes and regulations in the real estate business, you are in the best position to purchase a home now. Keep these points in mind and make the right decision.
Worried about the funding? We have amazing deals on Home Loans. Check them out now and get a step closer to your dream home!