1.Determine Whether Renting Or Buying A Home Makes More Sense
First think do you really need to buy a new home? Although it’s more than just a matter of price, right now, in most major cities, buying a home is much more affordable than renting. Though buying home comes with a number of pros and cons but so does renting—so you’ll have to weigh the pros and cons for yourself.
2.Know about Home Buying Process
Once you have decided to buy a new home learn all the necessary details about the process. As it is the biggest investment of your life and usually requires lot of sacrifices. Most middle class people dream of owning a home, so one must check title of a property, sometimes there is no clear land acquisition approval in this case the dream home can run into trouble as the builder might have scrap the project . Need to know few things before booking a property, are there all approvals from sanction committee, while booking a property refer to a draft copy of agreement. If you stay in a rented home there is option like subvention scheme how it works, there are three parties-the buyer, the banker and the developer. The buyer books the property by paying upto 30% money upfront. Bank pays the rest in the form of loan to the buyer. The bank disburses the loan to the builder as project progresses. All this is routine. In this the developer will bear the interest till possession or for a particular period mentioned in the buyer-seller agreement. This is good for people staying on rent as they won’t have to bear both rent and loan. Also, as the developer is bearing the interest cost, he is bound to finish the work on time.. This is an added benefit for buyers at a time when project delays are so common.
3. Learn More About A Prospective Home You Want to Buy
Once you find your dream home you must learn most about it. Ask your Adviser (www.fourrwalls.com) how long the property has been on market, know whether the property has been fairly priced is a resale property know about previous purchases. Learn about the APF (Approved Project Financial) of the property as this ensures that all the approvals required for the project is cleared by the builder also it helps to get loan faster. These factors can offer some clues on properties history also some properties are sold for low value for other reasons.
4. Manage payment situation smartly
Buying a new and selling a old one can be task. Make it simple, first sell old one and get loan details if you working class. Getting a mortgage is also a difficult task make sure you have all the paperwork as selling old and buying new will not get you in the new home on time so everything should be timed perfectly.
5. Save Up for That Down Payment
Down payment is the most important factor so as soon as you are thinking of buying a new property start saving for that down payment. There are options like down payment, construction linked and flexi-payment plans. In Down payment plan one has to pay upfront 1o% to 20% of the cost as booking amount, around 80-90 % within 45-60 days of booking and the remaining amount at the time of possession. This is a very affordable plan as the builder also gives discounts but only drawback is when the project get delayed. The construction-linked plan is a low risk plan but also it may be. In this plan, the buyer pays 10% of the total cost of the apartment or a particular amount for booking and rest is paid according to payment plan as per construction. The flexi plan is a combination of the both plans mentioned above in which one is has to pay around 30-40 % at the time of booking and a similar amount is to be paid as per construction milestones with the rest to be paid at the time of possession. So start saving Now!
6. Buy Less House Than You Can Afford
Based on current income and debts many online calculators show how much can one afford? So to make sure you don’t end up poor in your new home so sort out such homes which are less than what you can afford.try to make down payment of at least 20% and mortgage less than 30% of your gross income.
7. Take Your Time
When you are about to buy a new property don’t be pressed for time to make an offer. Take your time, think smartly spend more time to explore options in market. Take advise from your advisor. This is huge decision to move in to home which you love to live in for years to come
Good Luck !