Purchasing a home for the first time is an exciting and difficult life experience that should be valued and celebrated. However, first-time house purchasers should temper their enthusiasm and arm themselves with fundamental knowledge before entering the real estate market, and should ask the following questions:
Is it safe to say that I'm ready to buy a house?
Many people rush into buying a home when they are not financially stable enough to pay off the mortgage and risk losing their home.
Consider whether you're financially and mentally prepared to take on the obligations of home ownership, which include:
What kind of house do I desire?
Is it the size, the location, or simply a real-estate investment? Are you looking for a 1/2/3 BHK to share with your family or a home close to your office or business?
As a house buyer, make a list of your top priorities.
Do I have sufficient funds for a down payment?
You can make an approximation using online loan eligibility calculators. This is based on the Purchase Price of the Home, the Down Payment in percent (10-20%), Processing Fees, and the Loan Tenure.
A bank home loan would typically pay 80% of the entire cost of the home, leaving you to fund the remaining 20%.
You'll also need to include in other costs such as registration fees, lawyer's fees, property tax, and other paperwork, which should total around Rs 2-5 lakh. As a result, you'll need to borrow or save a particular amount of money before you start looking for a home.
What are the most typical first-time buying blunders?
What is the benefit of employing a real estate agent?
If you want to cut down on middleman commissions, you don't need one. It is dependent on your requirements. If you think you won't be able to negotiate as a first-time buyer or just don't have the time to do the paperwork and property hunting alone, you should employ a competent and experienced real estate agent.
What are the advantages in terms of taxation?
If you haven't sold your home within five years of buying it, you can deduct up to Rs 2 lakh for the interest portion of the EMI and up to Rs 1.5 lakh for the principal amount under Section 24. You can also claim a stamp duty deduction of up to Rs 1,50,000.
What documents will I require?
There could be several, however the following are the most common:
What are the hidden costs?
You may have to consider the following:
• Advance maintenance/parking payment to the society
• Registration (varies from state to state and is usually between 5-7% of the market value of the home
• Stamp duty
• Property Tax
• Brokerage fee (1-2% of the house price), if one is hired
• Home loan processing fees
• Moving in/shifting charges
• Furnishing/cleaning up the new house
• GST charges if the property is under construction
• Extra charges for additional features like a rooftop garden/personal swimming pool, etc.
• Lawyer fees
• Property Appraisal fees
• Electricity, water, internet, gas, and other utilities
How about home insurance?
Home insurance isn't required (though it may be if you're getting a mortgage), but it does provide protection against man-made dangers like burglary, fire, and rioting, as well as natural disasters like floods, hurricanes, and earthquakes, among other things.
Should I buy a property that is still under construction or one that is ready to move in?
Homes that are still being built are less expensive, but there is a danger that the development will be delayed, delaying possession. If you're already renting and want to buy an under-construction home, you'll have to pay that much extra rent before you can move in. However, because of the longer deadlines, they generate bigger returns, and if you sell it when it's finished, you may profit from the increased market value.
Ready-made units, on the other hand, are immediately available if you want to live in the house right away, don't want to spend any more money on rental housing, and they're GST-free.
What are the property's amenities?
Inquire about community amenities such as a clubhouse, swimming pool, gym, garden terrace, spa, sophisticated CCTV systems, in-house composting, etc., as well as if the society has tie-ins with intelligent society management software.
If a residential society has implemented end-to-end security, communication, and payment platforms like MyGate for internal management and passcode-based, automated, secure gatekeeping, it is called modernised and tech-savvy.
We think it is crystal clear for everyone what are the prerequisites for buying a home for the first time.
For more updates, keep visiting us.
© 2020 PROPERTIESDEKHO.COM. ALL RIGHTS RESERVED
