Things to consider before buying your first home – Sushil Raheja – CEO, Raheja Homes Builders and Developers

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New Delhi, August 17, 2016: Buying a home for the first time can be a pressurising task for many. What one primarily needs (apart from the money, of course) is a lot of clarity with regards to the purpose of buying the property, the location and the buying capacity along with a number of other things.

-Am I Ready?

Buying a house is not a decision that one can make in a day. There are a number of pros and cons related to it along with a long term commitment. What one must really be sure of is if they are ready for it. There are a number of related costs such as: down payment, loans approvals, EMI, furniture, other related household requirement (though this is applicable only if you are buying the property to move in). Also factor in all the hidden costs and if you can afford them for a long time.

Why Am I Buying The Property?

Are you buying the property to move in? Or do you wish to rent it out? Is it only for the sake of investment? Is it in the same city? If it is in a different city, is there someone to take care of it and keep you updated? These are some important factors that must be taken into consideration.

Loan Approvals

Go for signing the papers only once you are 100 per cent sure of your loan approvals. Never ever put anything on paper unless you have a strong financial backing and proper documents for the same. Maintain a strong credit score as it can help in a smooth loan approval process.

What kind of property am I looking at?

Have a clear idea about what kind of property you are buying. Is it a land or is it a property that is still under construction? Is it a ready to move in flat? Do you require to move in straight away or can you afford to wait? If you are going for a property that is still under construction, do a proper background check of the developer and find out if he can deliver on time.

Is the property worth the money?

This is a major factor that first time buyers often seem to ignore initially. Do not get lured off by an attractive scheme or location or the amenities offered. A good property is one that is at a convenient location with proper infrastructure, does not have any land dispute, and has all the basic amenities that you are looking at, have proper drainage and electricity connections and has a promising future. Buying a property worth Rs 5cr in a location that is over populated or has water logging issues is not really worth it. Buying a 1BHK flat with all the boxes ticked off is better than buying a 3 BHK flat with a number of drawbacks.

Compare

Always have at least 4-5 options and compare them. Narrow down your options and choose wisely. Waiting for a couple of years before making the final decision is better than a hasty one.

Pay attention to all the legal issues

Hire a good lawyer before signing the documents. Ensure that all the papers are in place and there is maximum transparency in the deal. Negotiate as much as you can and do not go by everything that the developer says. Do your own homework.

Calculate the Return on Investment

Return on Investment is the profitability ratio. The best way to assess it is by dividing the net profit by total assets. If you are buying a property to invest, make a proper calculation keeping the next 5 years in mind before taking the plunge.

Corporate Comm India(CCI Newswire)