Things to keep in mind when buying your first home
Enough of living in a rented house? Planning to buy your first home? Investing in real estate is probably one of the biggest investments that you would make in your life. If you make a small mistake, it can cost you for a lifetime. There are instances where buyers have been duped, maybe the land was disputed, or the seller did not have the right to sell the property. Thus, we suggest that you keep the following things in mind before you purchase your first home.
Check Your Budget
This is the very first thing that you must consider – your budget. Decide on your budget according to your financial capabilities. Your broker might say that the prices will never come down, but like every asset class, real-estates also have their ups and downs. Fixing your budget will allow you to narrow down on the choices and shorten the decision-making process.
Enquire about the land and locality
The next thing to do is to find more information about the Property. There should be no ongoing disputes or litigations on the Property. You must ensure that the seller has the proper rights, and the title is clearly in his name. At the same time, research about the locality as well. Find out more about the neighborhood and how well it is connected to the hospitals, airports, schools, and different significant parts of the city.
Approach a trusted broker
Remember that a broker gets commission from both parties. Thus, it might seem wise, but it can also be expensive. Ask your broker about his past dealings, and if need be, talk with the previous clients and take recommendations from as many people as possible. You need an agent who would keep your interest in mind and maintain transparency in the entire process.
Check the Documents
Purchasing a property or land involves a lot of documents. Ask for all the documents related to the land for the past ten years or more, if available. We suggest you take the help of a legal consultant to verify all the papers. Make sure all the paper works are correct and are in legal parlance before you make any financial commitment. Thoroughly check the Land records, Planning approvals, Clearances, Certificate of Land use, NOCs, and the blueprint of the Property.
Land Approvals and Conversion
Many-a-times, a new buyer, has been taken off from his land because it was agricultural land. You must ensure that the property you are buying has been completely converted into residential land, and there are no ongoing disputes. At the same time, ensure that the constructions are in accordance with the rules and regulations of the land. There must be proper approvals from municipal authorities and other state departments.
Inspect the Property thoroughly
Once you are satisfied with the paper works, make sure you take a look at the Property or the house you are buying. Check the paints, the walls, flooring, wires, plumbing systems, and likewise. It would be best if you did not spend a fortune on repairing and renovating the house after your purchase.
Do not get lured away by schemes
Your broker or agent might come up with different schemes and plans to attract you. They would talk about easy EMI loans or interest deductions on the mortgage. But, remember that all these schemes are not universally applicable to everyone. They come with terms and conditions. Before falling for any of them, find out whether you fit into the scheme and what benefit are you expecting from it.
There is no urgency
No one said that you have to get your own house by 35. Everything has its own time and pace. Your decision should be influenced by your financial conditions, your future plans, the current market scenario, and the interest rates. Buying your first home is a significant investment, and you need to make a sound decision.
Do your homework well and take calculated risks in the biggest investment of your life.