Planning to buy dream home? Equip yourself with these tips

It is always important to be extremely careful while investing in real estate. Photo: hikesterson/iStock

New Delhi: Buying a house involves a huge investment, and any wrong decision can result in life-long ramifications on your financial health. Hence, it is always important to be extremely careful while investing in real estate. Given the vast presence of residential real estate, a home buyer needs the power of discernment to buy the best property. Additionally, before taking the exciting step, buyers should equip themselves with the right information and research to make an informed choice for a prosperous future.

Setting a budget and affordability
It is important to set a realistic budget aligned with your finances as it ensures a secure future. The buyer’s idea of a dream home is welcome, but most homebuyers end up stretching their finances when they take the plunge to turn their dream into reality. Most end up taking a large chunk out of their life savings to buy a home. Hence, buyers must assess their financial condition and calculate affordability before purchasing the property.

Exploring Available Properties
Discover a world of possibilities in real estate listings and find your dream home. Given that we are in the digital world, information on a variety of available properties is at your fingertips. Digital research will give you the option of choosing a home you like most – be it a villa or a luxury flat. Technology has made a difference in real estate purchases as virtual tours enable buyers to examine several properties in detail, hence enabling them to make a realistic decision to purchase a home.

Evaluating the Neighbourhood
While buying a property, there is a need to have an understanding of neighbourhood factors like charm, safety, convenience, access to amenities and growth potential. Buyers must look for access to social infrastructure like educational institutions, hospitals, banks, hypermarkets etc. This makes a neighbourhood attractive and invites buyers’ investment in residential real estate.

Researching property values and market conditions
A real estate market analysis should always be undertaken before buying a property as it will help in understanding the current residential market, government guidance value and market value of properties. This determines the final pricing of the property which in turn enables buyers to prepare for purchase once they have completed research.

Registration and Stamp Duty
If you think you need to gather funds only for purchasing the property, here is a revelation. You are required to pay the registration charges and stamp duty too, which involves a substantial amount. Home buyers need to find out how much they are expected to pay based on the location and property that will be purchased. This point should thus form a part of your home-buying checklist.

Getting Pre-Approval for a Mortgage
A home seller often asks for a mortgage pre-approval letter before negotiating with a buyer. Pre-approval requires proof of employment, assets, income tax returns, and a qualifying credit score. Mortgage pre-approval letters are typically valid up to a specified time. Upon pre-approval, the lender will provide the maximum loan amount, which helps set a price range for the home buyer.

Conducting Inspections and reviewing legalities
As a home buyer, it is necessary to dig deep with thorough inspections. Scan property papers, documents, history of the project, reputation of the developer, and quality of the property. Identify issues that could have implications for the future especially about ownership of the property. It is also important to review legal documents and contracts to protect the buyers’ interests.

In conclusion, it can be said that you have to be careful about property purchases. Buyers need to be aware that apart from the above-outlined precautions, they can also avail of tax benefits on home loans which will enable the purchase of property. They should also pay special attention to resale value if they are buying property for investment purposes rather than inhabiting it.
(With inputs from IANS)

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