With an increase in disposable incomes, the easy availability of financial instruments, and the traditional mind-set of ‘having a roof over your head’, the thought of buying a house today comes almost naturally to people. And yet due to these very factors most tend to rush into the biggest purchase decision of their lives! We at Scapers, give you a few pointers to keep in mind before buying a home.
- Be Clear on the Purpose of the Property: Are you planning to live in the property yourself or rent it out? Do you see yourself or your children living there at some point? Or is it solely for investment purposes? Clarity on both the immediate purpose of the property and your long-term goals will help decide where you can buy the house, the budget you need, the configuration of the home and so on and so forth.
- Be Clear on the Budget you are Willing to Spend: Take a close look at your finances. You may be able to afford the initial down-payment, but will you actually be able to sustain EMI payments in the long run? That apart remember paying for a home includes many more costs such as brokerage fee, legal fee and of course annual property tax and maintenance charges. Take all this into consideration before deciding your budget.
- List Down all your Must-Haves: When making any purchase there are some things you might be willing to compromise on and some that are non-negotiable. For example, if you are buying a formal shirt you might be particular about the material and the brand you are buying from but may be flexible on the colour of the shirt. Similarly, while purchasing property you may have certain set requirements. The number of rooms for example, or the security of the property. Perhaps your location is restricted by distance to your work place and your children’s school. Or maybe you are looking for great resale value. Make a note of all the things that are non-negotiable for you.
- Get a Basic Understanding of the Terms Used: Initially, you may hear a lot of legal and real estate terms being thrown around. Ask for clarity on the terms you don’t understand. Separately do your own research. For example when you consider the area of an apartment are you talking about the carpet-area, built-up area or super built-up area? If these terms sound new to you, you need to inform yourself. After all, knowledge is power.
- Study the Builder: Just like you would look at the brand of a car, you need to study the brand of your potential new property. Take a look at some of the projects they have completed in the past. If you can, speak to those who live in already existing projects. You can even ask the builders themselves about the status of their recently completed projects, such as how long they took to complete it and how soon they received the completion and occupancy certificates. Choose a builder who is reputed and reliable. Scapers for example have been in the industry for over three decades now.
- Plan your Finances: Once you shortlist your property bifurcate your budget. How much will be covered by taking a loan and how much can you pay on your own? Find out your credit score. If it is low try an increase it before applying for a loan. Having a good credit score gives you better interest rates and makes loans more feasible in the long run.
Another aspect to consider while planning your finances is where you are taking your financial help from. Choose the most suitable bank or financial institution for you. To do this you need to look at a variety of factors such as the interest rates they offer (and whether these are fixed or floating), processing charges, how responsive the lender is to changes from the RBI and importantly their turnaround time.
These basics should get you started on your property-buying journey. Remember that while buying property can be an emotional decision, you need to approach it practically as well. We at Scapers have a number of projects in Pune that could help you start your house hunt.