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Buying your first home? Here are five things to consider

·3-min read
Concept of buying or building a new home. Male hand showing, offering a new dream house at the empty field with copy space
Concept of buying or building a new home. Male hand showing, offering a new dream house at the empty field with copy space

The real estate sector in India today ensures that homebuyers have a smooth purchasing experience with flexible payment plans, accessible home loans, and custom-made options according to the family type. Nevertheless, there are a few aspects that any prospective homebuyer should consider before investing in their first home.

Check your need

In India, there is a wide divide between people who buy houses and people who rent them. For renters, it is an easy trade because the residential rental return is 3-4%, which is a much better financial choice in contrast to buying a home, where the returns are 8.6%. While most homebuyers in India look at ‘buying’ as an investment rather than renting, it is important to ask yourself if you really need to buy a property. People who are in line to inherit the houses of their parents find it easier to rent because there is already a promise of a permanent residence in the future.

Assess your finances

What makes one financially ready to buy a home? If an individual does not have to bear the burden of additional loans like education and vehicle loan, then they can consider it. A person responsible for their family’s health plans and sustenance without a steady inherited capital will, again, find it challenging to make that down payment, which is a considerable amount for many. Often their whole life’s savings goes towards it. It is crucial to exact all the expenditures out and fix the surplus amount that one can afford to pay towards their home loan EMI. If the amount does not hurt your other savings plan, buying is a good option.

Check on the location

Often, cheap homes catch our attention on a billboard advertisement, but what most people consider before buying is the location and its feasibility while commuting to work. Then comes the proximity to basic lifestyle infrastructure like markets, banks, hospitals, schools, etc. When going through the process of trying to find a home, location is of paramount importance and should be considered, particularly for families.

Which realtor to go for?

Going for independent housing societies versus an established real-estate company for your first home is a critical factor to process. While the more enormous conglomerates are more transparent and have more facilities inside the housing complex, they also come at a higher price. Both sets have their own target market, and it is essential to consider where you belong financially before making the final choice.

What size is the best fit?

Think about the future when you buy your first home. If you are single, a small apartment may look like the immediate best option. But, think about how useful the home will be when your family multiplies. Similarly, there are people who like big spaces but do not consider the maintenance charges that automatically come up with them. Doing the calculation right, keeping the finances and utility in mind, helps one choose their perfect home.

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