Tips for First Time Home Buyers
Tips for First Time Home Buyers
Here we are trying to give some the tips for first time home buyers. Though these are not mandatory but still can help you a lot.
Everyone has seen the advertisements with some very beautiful photographs like House for sale, Property for sale, Luxury house for sale and many such things. We do have psychology to go through such ads. Whether we want to purchase a house or not but it always attracts us and many time such ads give us the reason and courage to plan for buying a house for the family. Without the factor whether you are a First time home buyer or already having a house, such ads make everyone impulsive to buy the home.
Owning a home is everyone’s will and also has become a necessity. But as soon as one starts thinking to purchase a house, a confusion also starts in the mind about the house to purchase. It is not a problem but a common syndrome. So, no need to worry about it. Just follow some guidelines before jumping any decision. These are not only the analysis but also the tips for First Time Home Buyers
Basic Things to understand while purchasing a home
Purchasing a house is not a routine shopping like went to market and picked one house. It’s a matter of life and future. If in hurry or in the state of confusion bought a wrong house, it will become a cause of tension for the remaining life.
So, what to do?
Before jumping any decision, it is always advisable to make a list you want from the new house, your needs and investment and budget you have for the new house.
Here you must understand the difference between Wants and the Needs you are listing for a new home.
Wants are unaccounted these may be anything including space, rooms, location, type, interior, garden or may be any thing else that may fall into luxury.
Needs are the least things the new house must have that can fulfil your immediate requirements with a provision for future lifestyle in a comfortable mode.
But it is always advisable go beyond the needs towards wants. Why? Because today what looks difficult tomorrow will become approachable as you will also get growth in your income.
Particular | Need | Want |
Location | Approachable Good Location | Approachable Good Location |
Environment | Best | Best |
Rooms | 2 BHK | 3 BHK / 4 BHK / Duplex Villa |
Kitchen | 1 Big | 1 Big |
Bathroom | 2 | 2 |
Bathroom Accessories | Good | Best |
Living / Dining Room | Yes | Yes, Big |
AC Provision | Yes (Wall and Room AC) | Yes (Wall and Room AC) |
Storage Space | Yes | Yes |
Washing Area | Yes | Yes |
Balcony / Terrace | Yes | Yes |
Parking | Yes | Yes |
Garden | Yes | Yes |
Financial Health Assessment
It is always advisable to list out the features you want from the new home and that list has now been prepared. Next important thing that comes now is the financial health assessment. Because purchasing a new house is a capital investment and it is always good if before jumping any decision, check it properly.
List out all liquid and equity you have including recurring long-term liabilities like Investment instruments (Insurance, SIPs, PF etc) and routine expenses like Education Fee, Monthly house hold expenses, health expenses, unforeseen expenses like travel, function etc.
Based on all this analysis you can prioritize your immediate and future requirements from a house.
Buy from a reseller or a Newly constructed house
Purchase form Reseller
It always depends on circumstances and the need of both, seller and buyer. If due to any genuine reason seller is in a hurry to sale, you may do a good bargain before finalizing the deal. But here in such condition before finalizing the deal it is always advisable to check all legal implications with the house like if it is a mortgage property? Any legal court case is pending against the property? Seller is the actual sole owner of the house? Is there any family dispute on the property? Sellers posses all the legal rights to sale the property? If any government dues are pending on the property? Etc…
Buying a old home from reseller may also require many other expenses like renovation according to your use. If this total cost of purchase and renovation and repair work is under the money you are saving as compared to purchase a new home then it may be a good idea but only if all other needs from a house are getting fulfilled.
One more thing is there if you cannot afford the burden of such renovation and repairing work then purchasing an old house is not a good idea. It is why because either you shall live in that unrepaired house or may borrow a loan for getting repair.
Chances of forgery are extremely less if purchasing a newly constructed house from any housing society builder who is following government norms to build and sale residential houses to individuals.
These houses may be bit costly but constructed in a well-planned way, defined by the Govt guidelines. Such housing societies will have a symmetry in design and construction quality. Interior and exterior of all the houses will be same. Normally they do not honour any request that require any exterior design change as it hurts the symmetry of construction.
Is the Location Important
Location is the most important factor while selecting a house. Generally, you should opt the location from where schools, market, hospitals like infrastructures are in near by location. There should be a good public transportation facility available.
It should have facilities for little, growing children to play. A location where senior citizens can do morning and evening walk with comfort.
Can I let the House on Rent
If you want the rental income from house, what is the prospects of letting out the house on rent. If this is a good location and can give me a good second income then it is a good option to purchase the house. In long run rent may increase too.
Can I get higher return on my property
There two options that may give a good addition to your house…
Prompt Location
This is the location which is already developed and after a period of time will give a good return to your invested value. But one thing is for sure it will require a good investment too. One more thing is there, chances are high it will not give good returns as you expect as it may already facing saturation and will get less people who may be interested in such high-cost residents.
Developing Location
Here chances are much higher you may get a good return on your present invested value. It is because you are purchasing it on less value as till now it is not a fully developed location but once will get fully or largely occupied, people may start taking interest in such locations. It is because still the cost of the property will not as high as the locations which are already developed and facing saturation.
So, it is always advisable before going to purchase a house, consider all the facts mentioned above. Though every time these are not correct but still at large will help you in taking a good decision.
