Owning a home of their own is often the top priority for most Indians. Apart from the financial security, the emotional satisfaction of being a homeowner is unparalleled. The current Indian real estate market is also booming and offers several benefits to homebuyers. Increased competition in the space has driven property prices down. In addition, the government has introduced measures like the PMAY scheme to make home ownership more affordable for a first time home buyer. In an interview with Economic Times, Anuj Puri, Chairman of ANAROCK Property Consultants said, “Many fence-sitters have realised that it makes sense to buy a home at this point in time, when prices have not risen too much”. If you are new to the process, here’s what to know when buying a house for the first time.
With the number of choices a first time home buyer enjoys, the challenge becomes to narrow them down. Identifying clearly what you are looking for in a house will help you find the right home within your budget. Homes today have become less utilitarian and more as a means of expressing the owner’s personality. As Adhil Shetty, CEO of BankBazaar.com, mentioned in an interview with ET, “For buyers, especially millennials, it is no longer about just owning a house or purchasing the biggest property they can afford. Homes have become a means of self-expression”. The first factor you need to consider is the size of the home you are looking for. The number of bedrooms you need depends upon the number of family member who will be living in the house with you. You also need to check if there any specific amenities you want from your home, like a gym, swimming pool or other recreational facilities. Once you list down exactly what you want in your checklist when buying a home, it will help you find your dream house much faster.
One of the most important things to consider is how you can buy a home without breaking your budget. The amount you can afford to spend on a home will ultimately decide which options are viable. Even though most home buyers use the help of a home loan to help them finance their purchase, the loan cannot cover the entire amount. Most banks only offer 80% of the total value of your home as a loan, so you need to have the remaining 20% ready to pay as a down payment. When deciding on how much money should you save to buy a house, you will also need to take into account how many years it will take to pay off your loan. If you are planning on retiring sometime in the next few years, a long EMI period might not be the best option.
There are a number of options today that a first time home buyer enjoys when choosing a home to invest in. Depending upon your needs and budget, you can pick the best option for you and your family. If you are looking for affordable housing and want the greatest convenience and quality from your home, an apartment will probably suit your needs best. If you want greater space and privacy, you can choose from villas and row houses. Villaments are another unique option if you want to combine the best of both worlds as they are spacious and offer greater convenience and security.
When you are trying to find the perfect location for your home, budget is not the only thing you should add to your checklist when buying a home. There are a number of other factors you should take into consideration, to ensure that your home isn’t just affordable, but also liveable. First, it needs to be close enough to your workplace, so you don’t have to deal with long, tiring commutes everyday. It should be easily accessible to other parts of the city with good roads available, so you can travel easily. You should also ensure that it is within close proximity to schools, colleges, convenience stores and hospitals. This will help you enjoy an excellent quality of life at your new home.
Since a home is an investment of a lifetime, you are probably going to be living in it for many long years. This is why, you need to find a home that has the potential to adapt to your changing needs. Even if you have a small family now, the size of your home should be able to accomodate any new additions. It should also be easy to modify in case you want to create a new room or change the function of an existing room. This is why, convertible homes are one of the best options. They allow you to customise your home depending upon your lifestyle and needs.
Your credit score is one of the most crucial terms to consider before applying for a home loan. Your credit score, or CIBIL score, is a number between 300 to 900 that is based on your credit history. If you have always paid your credit card bills or EMI payments on time, then you are likely to have a good CIBIL score. However, if you have delayed or outstanding payments, then your CIBIL score will be low. Once you decide to invest in a home, you should try to get your CIBIL score up as high as possible. By paying any pending dues and clearing up your existing loans, you can increase your chances of your home loan application getting approved.
In real estate, brand name matters. Small and relatively unknown builders might attract a first time home buyer with low prices, but they are often not worth the risk. Many of these builders do not have the required approvals and documentation ready, which can create complications for you. There might also be project delays which can cause you to lose money. This is why, when you decide to invest in a home, you should always do a background check on the builder. Well-known builders will always have their legal documents in place and ensure a timely handover of your property. You can also be assured of the quality of construction they offer since they have a proven track record.
Becoming more informed about what to know when buying a house for the first time will help simplify the process for you. When searching for homes to invest in, always ensure you choose a reputable builder, like Shriram Properties, to ensure that your home-buying process goes smoothly.