6 Best kept secrets for Homebuyers
September 6th, 2018
The prospect of buying a home can be exciting and will generate a lot of interest. But at the same time, it can force potential home buyers to overlook a few things. In other words, buyers end up making mistakes that can prove costly over time and lead to bad returns on investment.
We have put together a few best kept ‘secrets’ or tips that can help buyers during the home purchase process. Let us look at a few –
Investing right: You have read it right. A most common mistake people make is investing in a home at a wrong time. There are two important underlying secrets to the home purchase process – a) Invest in the right property and b) Invest at the right time.
Sometimes potential buyers can get carried away by fancy advertisements and compelling property promotions and end up buying something they wished they had not. Just because a property seems to cost less and there is a ‘’hurry up’’ sale promotion it does not mean you should go for it. Conduct proper research on the developer, the project and the area. Location or area matters big time – it should be convenient and offer long-term gain.
The timing of the purchase is also of utmost importance. There is a universal rule in real estate – Buy when you can afford factoring everything from your current job, your earnings, savings, loans etc. Do not be tempted to buy just because your friend or colleague have decided to.
Use ration, not emotion: It often happens to us as home buyers – we get emotional. Emotion rules over and you get attached to a particular home just because the design is great or the paintwork is amazing. These are not the right reasons to buy a home. If you are especially dependent on regular income and do not have enough savings then you should go by ration and logic.
Go for a home that gives your money’s worth and also has future resale value. Choose a location that has all the necessary civic amenities, infrastructure, schools and healthcare centers in place. All these will provide for a comfortable living and also enhance the property value for the future.
Unforeseen costs: Something that eventually traps homeowners is the set of unforeseen costs. No one can predict the future costs but everyone can plan and be ready for some of them. This is especially relevant when you take a home loan and are
dependent on your regular income to repay the loan. The property taxes, the utility costs, the apartment association costs, apartment maintenance costs are some of the ‘sleeper costs’ you should factor in well before you make the purchase.
The prospective maintenance and repair costs, cost of hiring maids and other services, an unforeseen hike in property taxes (yes, that can happen), additional costs on leisure facilities and amenities provided (for mega or high-end projects) are some of the other costs you should be prepared for.
Bigger is not always better: It is so tempting to go for a big home, especially, when that home comes up for sale at your dream budget. Be wary of sellers selling big homes for lesser than market rates unless of course you know the seller personally and can trust him/her. Bigger homes at ‘’affordable’’ budgets may have some issues which the seller will choose to not divulge. It could be an issue with the supply of civic amenities, problem with the infrastructure of the building, a home that is not Vaastu compliant or worse, an unfriendly neighbourhood.
One other thing about bigger homes is the difficulty when it comes to a resale. Remember, homes are usually priced based on the locality and the block they are located in. Selling a bigger home with a higher price while the homes around demand a lesser price can be quite a task. Unless you really need a big home, it is always safe to go for a standard home.
Beware of ‘border disputes’: It is not surprising that some home buyers end up in disputes post the home purchase. Of utmost importance is for you to get a survey done or do the survey yourself so you get to know what exactly you are paying for. If it is a completely new flat, ask the developer all the questions needed to help you understand what is it that you will be getting. Remember, most developers go with the super built-up area when it comes to pricing your property and not the actual or carpet area. You must also realise that the tax levied by the government (also State of Karnataka) is on the super built-up area and not on the carpet area.
If you are purchasing a standalone or individual home with a compound wall and front area, be absolutely sure about the borders with the neighbouring houses. This might seem trivial in the beginning, but once you occupy your new home you might end up having trouble in the form of border or boundary disputes.
Check the Neighbourhood: Lastly, do a thorough check of the neighbourhood. There have been many cases of homeowners who were mighty pleased with their home purchase but were completely distraught because the neighbourhood was appalling and was a huge disappointment. Once you think you have found the right home, make sure you visit the neighbourhood at different times of the day to see if the ‘’climate’’ and surroundings suit your lifestyle. It can be too noisy a neighbourhood for a peaceful living, you might have on-going construction and road laying that can disrupt the routes to your work and back home. Check for anything that can cause a disturbance, the home could be a good buy but the stay will not be worth it.