Buying a home can be a sudden decision when your circumstances change like marriage, new member in the family, job transfers, etc. Without prior planning, you may overlook some crucial features. So a checklist can help you make the best use of your money.
Says Yashank Wason, managing director of Royal Green Realty, a real estate company: “Prior to purchasing a house, assess factors like location, budget, amenities, and legal clearance. A buyer should also scrutinise essential documents like title deeds and property tax receipts.”
Set A Clear Budget
Begin by creating a detailed budget to understand your financial boundaries. Calculate your total budget, including reserve funds, income, and expenses that may continue even after buying the house. Determine your spending capacity on the house. If you have to take a loan, calculate your monthly mortgage payments, the loan tenure, processing charges, etc.
Suppose you find a house of your choice, but buying it can be a significant expense. Besides, unanticipated expenses could arise. So, build an emergency fund in another savings bank account for unforeseen life events like health emergencies and house repairs.
Evaluate Your Home Requirements
Assess your needs for an ideal home, including the number of bedrooms, bathrooms, yard space, and garage layout. If you are in your youth, consider the future possibilities of an expanding family. After identifying potential homes, hire a professional or a construction contractor who can uncover hidden problems in the house. It can help avoid costly repairs later.
Location And Commuting Considerations
While considering the house, factor in daily commute time to your workplace and proximity to everyday necessities. While a distant home might appear budget-friendly, long commutes can be draining. For families with school-going children, always calculate the distance to nearby schools. If you are near retirement, and your children may be working in different cities, a bigger house may not be suitable. It's also a good idea to rent rather than buy a home if you're in the working age and must move between multiple cities.
Location also plays a huge role in resale value. Consider neighbouring properties and demand before buying a house. Also, assess potential neighbourhood changes, construction projects, road alterations, and new road projects that may impact property value later.
Realtors' Expertise
Says Wason, “A reliable realtor eases the intricate process, ensuring a successful home purchase. When enlisting a realtor, prioritise their local expertise, track record, and communication. A buyer should also scrutinise documents like title deeds and property tax receipts.”
A realtor can negotiate on your behalf, which may help reduce the price. One can also seek legal counsel for clarity on the paperwork and its implications.
