Factors to Consider When Buying a Home
Ask yourself the important financial questions before diving into an ocean of houses to buy for your family
Home has always been an emotional decision and one that remains with you for a long time. The process of buying a home could be very tedious and emotionally draining for a few. However, there are few key factors to consider that can help you in your journey to buy a home.
What’s your Budget?
You must understand the right budget keeping in mind your other obligations. This can be planned by looking at current monthly, annual, family, health, education and travel expenses along with any investment plan. A good housing loan option can make life easier which means you can also factor in a loan value while deciding how much you can pay for buying a house.
What’s your Requirement?
You must understand your family's needs and decide what size and configuration are required to meet the current and future requirements. Factor in any unique requirements on kitchen, study, balcony, view, which will guide the selection of the right option.
What is your Preferred Location?
Often you will get similar options in a different location. The one which is close and well connected to your place of work, kids’ school, amenities, retail, and transport hub should be preferred. Location will also have a large impact on the resale demand and value appreciation of your home.
What’s your Loan Eligibility?
A home purchase is expensive and many buyers face challenges on budget. This is where the right home loan solution can help. Home loan eligibility depends upon the repayment capacity, income, existing loans or debts, age of the applicant, and property value. Home Loan solutions have become a lot easier with new-age fin-tech platforms where the customer can compare and choose from multiple bank/ HFCs options and apply for efficient processing of home loans.
What are Stamp Duty & Registration charges?
When planning your budget for property buying and deciding to buy a property, you need to also factor in the stamp duty rate and charges as applicable. Stamp duty and registration charges are paid over and above the price of the house. These charges may differ from state to state as each state has a set calculation.
What’s the Resale Value?
One of the important aspects which often gets overlooked is the resale value. A good resale value comes from the prospects of the location and quality of the building. Also, if you are at any stage looking at selling and buying another Home this aspect becomes very critical.
Any Additional Costs?
Your total cost for home buying also includes costs related to fees paid towards real estate agents, legal documentation, home improvement, interior works, parking, property insurance, society & maintenance charges.
What are the Amenities Offered?
While buying a home, you should also give due weightage to other amenities which are part of the development and you can enjoy like gym, swimming pool, tennis court, open garden as they create a lot of value in long term.
Finally, real estate has been a very good investment if all aspects are considered before buying. It is an asset that you can enjoy using and also gain capital appreciation.
The author is Co-Founder & CEO, Easiloan
DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.