Things to Keep in Mind While Buying Your First Home

Last Updated : April 27, 2016, 5:51 a.m.

Are you planning to buy a new home or your first home? If yes, you must be having a lot of questions in your mind regarding the property and kind of flat you should own. Buying a home for your family is a great experience. It not only gives you happiness, but it also gives you a sense of pride and accomplishment. Whether you are first-time buyer or you are buying your second or third property, you always have a range of budget to invest. You know your budget in advance and you want to close your deal very much within your budget. The real-estate in India is growing with phenomenal pace and more and more people are investing their money into this sector not with just the view of buying a home or property, but to get higher returns on their investments. Buying a home is your first and important step towards a higher investment and building long term equity. Here are some important points, which you should keep in mind while buying your home.

Maximum budget: You are pretty-well aware of the expenses and your monthly budget. You know your monthly income and how much you can spare every month after meeting your monthly expenses. Be it your first home or second or a property with perspective of budget, you have an upper cap for spending and you can't go beyond that. So ensure that you are getting the best deal and property within your budget and without affecting your monthly budget and saving on a higher side.

Check the location first: Try to search for a property, which is at prime location or a location, which is close to the prime location. Location can play a vital role at the time of resale of the property. Don't invest at a location, which is not fully developed or aloofed. Invest some time to search for the right kind of property at good location because if you buy a property at good location the price of property will increase more as compared to property at outskirts of the city.

Rental rates in the area: If you are buying the property with investment purpose or it's a second home for you, think about the other points as well. Are you going to sell this property in the future? Are you going to rent this property? If you are going to rent this property in the future, then keep this point in mind as well. Is the location good enough or worth to invest huge amount to get rental income? So knowing about the rental rate in the area will help you to know about the future returns on your investment.

Resale value: At the time of buying the property, you hardly consider this point in mind. You bother more about price or the amount you are going to pay at that moment. But you never think about the prospective of resale value. Is the property going to fetch you an increased amount when you resale it? If you select a wrong property or property at wrong location, you will face difficulties at the time of selling it.

Loan eligibility: After getting the quotes regarding the property price, the next thing you should check is your funds. How much money you have and how much money you require? Are you going to avail a loan? What is your loan eligibility ? How much amount can you borrow from bank? The maximum loan amount you can get from any bank. However, the maximum eligibility criteria may vary from bank to bank. Therefore, first try to know what is your maximum loan eligibility.

Connectivity: This is really important to know before selecting the property. Is the property well-connected with local transport? Having a property well-connected with local transport and closeness with railway stations, airport or local bus terminals always gives you an advantage. This kind of

property is just ideal for you as you can easily reach anywhere any time.

Neighbourhood facilities: As you are going to stay there with your family, so you need to consider about the other aspects as well. You need different things in your day-to-day life. How far is your home from local market? The rates of property not only depend upon the area of the property, but on other factors as well. Closeness to hospital, school, college, park, mall, local market, theater, bank, shopping center, etc., increase the property value. Therefore, just ensure that you have maximum amenities in your neighbourhood.

Water supply, electricity and sewage: While buying a property you need to consider about the water supply, electricity and sewage facility as well. Is there proper water supply on time? Is the society has its own water booster or will you get muncipal corporation water supply? Also, check about the electricity and power-cuts. What is the maximum duration for power cut? Is power-cut a very common scenario in the area. For getting good return on your investment in future, just ensure that there is proper water supply through out the year, good electricity and healthy sewage system available.

Check on legal front: This is very important point to check before buying the property. Check there is no legal issue with the property. Check all the documents are authentic and there is no dispute or any legal issue with the property. Get help of any lawyer to understand the legal terms related to property and check their authenticity.