Finding the dream shelter for your family can be troublesome and perplexing. In this blog, you will get a step-by-step guide on your customer journey of buying a house. You will get a detailed idea of the things to consider before buying a house in India. Whether you’re purchasing your first home or a beginner in Real Estate investing this home buying guide will help you understand it completely. The following 5 phases of home buying are encountered by every individual.
Stage 1 of Home buying: Goals
If you are buying a house, the goal with which you are doing so has the topmost priority to decide your next steps. This is the first phase of home buying. Are you going to invest in the property as a Real Estate asset? What could be the chances of an increase in its resale value? Likewise, If you plan to buy a home loan you should ask “Will the home loan interests increase in future?”, “How much of loan and downpayment can I afford to pay?” If you are relocating for your next job then buying vs renting is a major dilemma that comes into the picture. Consequently, you should decide which suits you depending on your goal.
Moreover, Investors and mostly Buyers neglect resale value while buying or investing in a house which could dip the prices in future. Jotting down your goals makes the further stages of the home buying journey smooth. Neglecting this stage is one of the first-time home buyer mistakes.
Stage 2 of Home Buying: Finances
Have a clear-cut understanding of your finances and the budget. It is never a good decision to put your monetary funds at stake to buy your next dream house. Track and record all your income sources, expenses, liabilities you owe and the assets you own. The property that you will buy should meet your requirements so that you can set your budget accordingly. if you plan to opt for a loan make sure that you are eligible for so. Additionally, keeping a rough idea of how much down payment you can afford to pay is a must. Make sure to never neglect the upfront costs involved in home buying. Make sure what are your current investments. What is your disposable income and what are the savings you made from them?
Stage 3 of Home Buying: Research
You should decide whether the location of your next shelter is convenient for your daily commute as researching is the inevitable part in the timeline of the home buying process. Consider visiting the sites and comparing each one of them based on your goals. You should closely observe the construction repairs, maintenance and what is offered in comparison to what was advertised. Compare each of the locations based on transport, civic facilities, infrastructure, and accessibility. Shortlist the areas following all these necessary points. It’s always suggested to visit multiple sites in the same location to shortlist the best deal amongst that location. Eliminate the ones which didn’t meet your criteria. This is a tedious but the most important stage of buying a house.
Stage 4 of Home Buying: Finalising
Finalising is one of those 5 steps in the home buying process where you make your best move.Choose the best deal. Again, don’t forget your goal in mind that’s what will not make you repent later. Don’t hesitate to negotiate the deal. It could turn your good deal into a great one. If you never try you never know. Furthermore, ensure with a lawyer that you have received the necessary documents accompanying the transaction. Incomplete or legally unsound documents could land you in big future trouble.
Concealed costs, i.e, hidden costs may come to you as a surprise if you are a first-time home buyer. Don’t worry! From now on you won’t! Stamp Duty and Registration fees, parking charges, maintenance deposits, Sales Tax and Property tax are some concealed costs. Stamp Duty and Registration fees are collected by the government once you buy the house. The charges depend upon the geographical area you chose to live in. When a buy a house prior to its completion, the government asks you to pay sales tax as high as 10% of the apartment.
Property tax is the tax levied by the municipal authorities to provide you with civic amenities. The secretary charges you an advanced amount called maintenance deposits for apartment maintenance. While allocating your budget, keep a note of the above-mentioned concealed costs.
Stage 5 of Home Buying: Moving In
This is the last and the most exciting stage of the home buyer’s journey.Finally, after registering your dream house to your name, it’s time for you to relocate. The house you had dreamt of living in is now yours!
This stage involves applying for a home loan. There are various parameters to consider here like loan tenure, loan-to-value ratio, and interest rates. Property insurance also comes into the picture during this stage. It safeguards your financial future from any possible property damages, property title or other potential legal issues.
Conclusion
The steps to buying a new home for the first time can make you pull your hair. However, it’s a lifelong investment you will make into a real asset. If you do have any doubts comment or contact us now. We are 24*7 at your service. Read the above complete guide for home buying to make sure you don’t miss any of these pointers.
