Buying and moving to a new house can be exciting and stressful at the same time. Everybody wants a comfortable, cosy and beautiful home for themselves and their family. If you are planning to buy a new house and are looking for a home buying guide, read on to take a look at an easy to understand 8 step guide.
The kinds of properties you can purchase are as follows:
A new home: These are fully-constructed and ready to move properties that you can buy from builders, government authorities or co-operative housing societies.
Under-construction home: An under-construction property, as the name suggests, is a residential living area that is still being built. Once the property has been fully constructed and the relevant authorities have received the mandatory amount of certificates, you can take possession of them.
A resale property: If you are determined to buy a home in a very specific locality but cannot find a newly-constructed home there, you may want to go for a resale property. A resale property is a home that was owned by someone else before but is now on the real estate market for sale.
Plot of land: If you want to build a home of your own from scratch, you will need to own a plot of land to build it on. If you do not own a land, you can simply buy one with the help of a property loan and then build a house on it later as per your needs.
Bungalows/Villas: If you wish to not be a part of a housing society, you can always buy a bungalow or villa in either your city or any part of the country.
Having a home that you can call your own comes with several benefits. They are as follows:
Sense of security: The most obvious benefit of having a home in your name is that you will have a place that you can rightfully call your personal space. Being a homeowner will give you a sense of emotional security and a place where you can be yourself. If you are a married individual, you will be providing the same kind of sense of security to your spouse and children.
You become the landlord: If you are someone who is living in a rented apartment, you are well versed with the perils of having a landlord on your head. But, when you buy a home for yourself, your landlord-related stresses evaporate instantly as you become your own landlord and you get to do things around the house as you please. Additionally, you can even rent out this home and earn income form it like a landlord.
Investment: When you buy a home, you essentially end up investing in real estate. Real estate investments appreciate with time and make investors a handsome amount of money if they hold onto it for a long period.
Below mentioned are the 8 steps for new home buyers that they need to consider:
Step 1: Research and the Budget: The first thing to focus on in a home buying guide would be the budget for you to think about.
A planned budget is necessary for you to decide on in order to be able to deal with your every-day as well as long term expenses without much trouble. It is important to plan a budget and then look for a new house as it would then ensure that the entire process of buying a new house will not negatively affect your family’s needs.
Step 3: Rental Rates Present in The Locality: If you plan to buy a new house and invest by using it as a rental property, do find out about the rental rates before choosing a location to buy a new house at. Even if you do not have any immediate plans of investment, it is always a good idea to keep it in mind for the future, for times of need.
Step 4: Resale Value of Property: The resale value is also an important factor to consider while buying a new property. It is a common mistake among buyers to not pay attention to the resale value. Keeping the resale value of the property you like and the ones around it would give you a clear idea of how things might be in the future or in times of emergency.
Step 5: Eligibility of Home Loan: One of the most important things to consider while you buy a new house is house loan eligibility. There are several factors such as your income, existing debts and your capacity of repayment that will determine your loan eligibility. It is important to keep these in mind while looking for a new house.
Step 6:Registration Fee and Stamp Duty: You are required to find out about the charges or rates that are applicable in the city you live in. The registration fee and stamp duty charges will differ and depend on where you live, and is an important factor while buying a new property.
Step 7: Additional Expenses: One thing that every home buying guide warns people about is the possibility of additional or hidden expenses. You need to talk to people living in and around the property to find out if there's a garage to park your car at, the maintenance costs, etc before you buy a new house. You may also take help from professionals to find all of that out for you.
Step 8: Property Insurance: The insurance of property would ensure the safety of your financial future. There are various insurance policies that you may take a look at for your new house. There are various kinds of converages that a property insurance plan or home insurance plan has, and you should take a thorough look at them to know what is the best option for you and your family.
If you want to buy a new home, it is important for you to make plans for the same in terms of finances. If you plan on funding your new home through a housing loan, make sure that you go for a housing finance company that will give you a house loan at a competitive interest rate, provide flexible repayment options and a host of other benefits, such as Bajaj Housing Finance. Additionally, you must remember that you will have to pay a percentage of the property upfront with your own money. The higher this amount will be, the lower will be your EMI and applicable interest rate.
First, you must select a property that will fit your needs spatially and fits your budget. Then, you must look at the infrastructure in the area and the track record of the builder and whether or not he has obtained a completion certificate (CC) and an occupancy certificate (OC) for the property. The latter will be needed if the property is fully-constructed and the builder claims that it is ready for possession. Post that, you must ensure that the general location of that property has basic amenities such as network coverage, sewerage and power supply.
The rate of asset appreciation may be low for properties in small cities, but so will the price. However, it would perhaps be wise to invest in a small city that is witnessing a boom in terms of infrastructure, because, if you do, you may benefit from a significant appreciation in the value of your real estate investment over a short period of time.
A developer of repute and market standing essentially ensures delivery and build quality of the property. However, if you do buy a property from a reputed builder, you may pay a slightly higher price, but it will be worth it in the end.
First and foremost, you must go for a property that is in a good locality and close to your workplace and/or close to a school and places of entertainment if you are a married person with children. Then, you must ask yourself if it would make more sense financially for you to buy a property in that area or simply lease it. If you plan on buying the home and plan on doing it so through a home loan, you should check whether you have enough money for a downpayment and the equated monthly instalments (EMI) does not exceed 40% of your monthly income.
In the context of real estate investment, if you buy a property and then sell after having possession of it for less than three years and make a profit, you will make a short term capital gain (STCG). If, however, you sell the property for a profit after having possession of it for more than three years, you will make what is known as a long term capital gain (LTCG). You can save on LTCG by investing the money you received from the sale in some other property. However, you cannot save on STCG under any circumstances.