5 things every new buyer should remember when purchasing a house

5 things every new buyer should remember when purchasing a house
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New buyers need to be careful of certain things in the marketplace that can result in matters of concern if not kept under check.

It is nearly mythical to consider prices of real estate rise higher with every passing year. There have been several instances over the last few years where house owners have struggled to find a suitable buyer due to the inconsistency of the real estate market. It often takes more than just proper research to find the perfect home, especially for first time buyers, who can be easily fooled by the old owners who are simply looking forward to get rid of their long due property.

However, even a new buyer who barely has any knowledge of the real estate needs to be careful in purchasing. Along with research finding the right home requires a lot of legwork, getting rid of profit-suckling brokers, and of course with the central’s least involvement in the real-estate industry, there is a necessity to personally supervise any property before putting down the papers on them. Since there is always a first and anyone is bound to commit some mistake the first time, here are the top 5 things every new buyer should look into before purchasing a new home:

  1. Reasoning and paying off - It is important to understand the need for a new house. Unlike older citizens who are done with their days of chores and services, younger buyers who have recently started off with life need to have a solid reason behind purchasing the house. It can be for commute, to start a livelihood, and often buying a new house means to be registered as a permanent resident of a particular city or town. Hence, once it is decided that the city or town is suitable for a livelihood, the buyer might want to start clearing off his/her debts. Any kind of partial payment shows off poorly on credit ratings which can badly affect home loans. Hence, once the debts are cleared out it becomes easier to allocate money for a new home.
  2. Required documents - Once the debts are cleared it is time to arrange all the required documents which will act like a proof behind purchasing the house. If the buyer is planning on buying the property directly from the builder, the required documents will include allotment letter, original sale deed, payment challan, possession letter, lease deed in original, and completion certificate. It is usually advisable to buy the house from the primary market, as according to Hemant Batra, senior partner at Kaden Boriss, “Risks are low when you buy a property directly from the primary market.”
  3. Plan your taxes - Buying a property for the first time means there will be a quite an additional load on all the tax payment. Since the first time buyer does not have two properties, where one can be exempted under the tax law, it might be wise to invest on public provident fund in order to get a deduction on home loan. Investing on mixed classes help since this will help during any big-ticket purchase. In this case mutual funds can be a big place for temporary investments.
  4. Location should be suitable - Even though the house is affordable and you are able to meet all the requirements such as investments and taxes, it always advisable to double check the location of your new home. It is important that in a city the house is located in an area which not too far from work, and also has the basic amenities such as a grocery store, maybe a transport stand, and if in Mumbai, it is always better to find an area that is not knee-deep in water during monsoon. Moreover, a preferred location would always be the place which stays away from political upheavals.
  5. Is the house worth all the trouble - We are all familiar with the falsified promises of market, hence, it is always advisable to do a double-check on the developer, the agent, and the house itself. Moreover, a good looking house does not necessarily have a strong structure and in many cases any natural calamity has caused severe damage to houses. In order to be able to encounter such cases it is always better to keep some extra money aside that will help with future damage repair, if needed.