Nov 2017
13

5 Questions to ask yourself if Thinking of buying your first home

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5 Questions to ask yourself if Thinking of buying your first home Update

For those looking to buy their first home, do note the following/ask yourself these questions first: 

WHY?

1. Do you need a home now? Why? - This is an oft debated question - "Rent or Buy". Its about having your own asset vs having the flexibility + opportunity to invest in other instruments.. Sadly though, it is often driven by societal pressure of owning "your" home, even though technically its the Bank's for a good 10-15 years. A separate discussion altogether anyway involving if its for investment purposes (why not invest in mutual funds or bonds etc.? ) or self-use and so on... 

 

HOW MUCH $$?

2. If you did decide to buy a home, always decide or know your budget first - don't keep your loan amount more than 1/3 of your take home (thumb-rule, may differ if multiple sources/people to contribute), so reverse engg. the budget range. I went overboard on this. This range will give you ideas on what (2bhk / 3 bhk / Villa/ penthouse) you may afford and in which part of the city - you don't need an expert to tell you this. Everything is available online. Also, be careful when you are using your family's funds (gifts), don't overburden them just because you want a home. Your life is your struggle and your parents should not suffer now for your future. Not anymore.

 

LOCATION LOCATION.... (thank you for the cliche' real estate agent!)

3. Don't buy a home closer to your office - just because as in life, nothing is permanent, your job too is not. So, instead of keeping your current workplace as the basis, use the overall factors of a city , i.e. proximity to social infrastructure, access to public transport, amenities like Metro/Subway, hospitals, schools, malls etc. Some like the city-life, some want the peace and calm. Everything comes at a price - tailor your requirement accordingly.

 

RESEARCH

4. Do your research about the top 4-5 options that meet "your" criteria. Then look at the past/current projects of these developers, talk to their current customers, go to their social media pages (beyond the paid tweets/posts) to find their truth.Use your own head, inputs from your real estate agent (should go for a reputed company/agent than your friendly neighborhood all-purpose guy for this) and then take a decision.

 

Real(i)ty Bites

5. Be ready for the reality - Real estate is a capital intensive and a complex industry. There are many dependencies on authorities for approvals, contractors for construction and overall the morality of developers to "deliver" what they promise. Be ready for hiccups on the way and be prepared mentally and financially.

 

P.S. While deciding on the budget, save some money for things like interiors, registration, car parks, things you need in a new home (appliances etc). Sometimes these go unaccounted and then we scramble for funds at the last moment or worse - compromise.

Updated: 2/26/2018 12:57:50 AM
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