Buying a home is a once-in-a-lifetime decision. Besides your savings, you invest emotions and time in finding the right home for your family.
And therefore, it is essential to consider various aspects of the purchase before finalizing. Various factors, including real estate prices, transportation costs, and lifestyle expenses, greatly influence home buyers in metro cities across India. Recognizing the significance of considering these essential factors and careful planning while searching for your dream home, we have compiled a comprehensive list applicable to these major metro cities. With the cost of living soaring in urban centers like Bangalore, including Mumbai, Delhi, Hyderabad, and Chennai, purchasing a home becomes a multifaceted undertaking.
1. Need: The first question every home buyer should ask is, “Why do I need to buy a home?” There can be many correct answers to this question. But essentially, home buyers should be clear about their objective for buying a new home. Focus on calculations to determine how much it will affect your financial position and if your reason for buying a home is worth the expense.
2. Budget: Considering your budget may seem obvious in buying a new home. However, remember to account for your family’s present needs and ensure that your EMI payments don’t affect your monthly budget. Try to find a home that allows you to adhere to your budget while maintaining the same lifestyle for your family.
3. Location: Your new home’s location affects not just your lifestyle but also the future resale value of your house. Buying a bigger home far from the city centre may be tempting. New homes away from the city cost less, but you and your family may not enjoy the living experience. Look at the infrastructure near the house’s location to ensure that schools, markets, and hospitals are nearby.
4. Size: Real estate agents, builders, and marketers may offer misleading information about the size of the home you are considering. A built-up area of 1800 sq. ft. would comprise only 1400 sq. ft. of livable space. Besides, if you are looking for a 3BHK accommodation, you don’t necessarily need a larger size. As real estate prices are based on the sq. ft. size of the property, you can save a significant amount by carefully analyzing the house’s size.
5. Loan Eligibility: Your home loan eligibility depends on your income, loan repayment capacity, existing debts, and a good credit score. Before you begin looking for a home, it is best to determine your loan eligibility. The amount you can get from a bank will help you accurately assess your budget. Once you are clear about the total amount you can spend, you can filter your search to include only those homes that fit your budget.
6. Connectivity: The connectivity of a location to the city centre is a vital factor in determining a property’s value and resale price. If you are buying to lease the property out to someone else, investing in a well-connected property is best. Tenants are also attracted to homes that can ease their commute to work and other places in the city.
7. Hidden Charges: A property transaction has many hidden charges. In India, home buyers often overlook the hidden charges in a big purchase. Study the costing figures closely to determine the exact cost of buying a home. Also, consider the renovation costs or furniture you must buy to make the property livable.
8. Furniture: Furnishing a bare apartment or home is a significant expense. When buying a new home, don’t forget to consider the cost of the new furniture you need for the house. Take an estimate from a furniture store to get an idea about the expenditure before you decide.
9. Property Insurance: Insuring your property from the day you start your home loan is a wise decision. In any unforeseen circumstance, the insurer will settle your home loan with the bank or lender. In some property insurance plans, the insurance company covers the borrower, the home, and all your belongings. You can also use the premium payment for tax benefits.
10. Legal Consulting: Home buyers are usually unaware of the legal aspects of buying properties. Before purchasing any property, consider the laws governing the land and ensure that everything about the property is legal. Take legal advice from a qualified lawyer and draft an agreement once the terms are finalized.
11. Additional Costs: Several additional costs are associated with buying a home in India. Real estate agents, land surveyors, lenders, and home inspectors – all charge a sizable fee for their services. Discuss all minor and significant expenses, e.g., car parking, club membership charges, registration charges etc., before signing the agreement.Home buying should be approached practically and with information like all significant financial decisions. Based on your objective of buying a property and your budget, you may be able to zero in on suitable options for properties – but it is essential to consider all the above-listed factors before buying.
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