Acquiring a home or rather building one has always been on top of the list of ambitions for every Indian for sure. The beginning of the 21st century has witnessed significant growth in this trend with an increased supply of disposable income in the hands of young Indians. Here are 10 must follow tips for first time home buyers in India before signing the home buyer?s agreement.
1) Budgeting: First time home investment is always multi-dimensional. Your home provides you the much needed shelter, security, satisfaction of having achieved a major milestone in life, an elevated social status, a sense of responsibility, financial commitment, and better returns on your investment. A well thought out budget is therefore the stepping stone for first time home buyers in India.
2) Affordability: Many first time home buyers in India fail to factor in a long list of expenses after they have moved into their new home. Furnishing, interiors, painting, and other miscellany can potentially gobble up several lakhs of rupees. Finding an affordable home and making the space comfortable for you and your family should gain priority over your passions and other influences.
3) Location: Like the famous quote goes the three most important factors in buying a home are location, location, location, choosing the right location is the important step for the first time home buyers.
4) Assessing your needs: For first time home buyers considering city dwelling units in particular, the wide array of options can present significant confusions like what floor should you choose in high rise structures and why, what is the quality of material used in the construction, is there a recurring monthly cost of maintenance, what deviations from standard specifications are possible and at what cost are among the major questions that should be answered to tune into the needs of your family.
5) Scalabity: The acquisition of a home for most first time home buyers is among the earliest investments in life. The number of occupants in most families will steadily go up over a period of time. Ensure you consider scalability options while buying a home.
6) Factor in delays: With high rise structures and community housing, delays are inevitable for varying reasons. Fewer builders across the nation have demonstrated their ability to stick to committed delivery schedules. Working with a cushion of 90 to 120 days will therefore work to your advantage.
7) Know how to deal with builders: Dealing with builders offering high rise structures and/or group housing is no mean task for the first time home buyers. Ensure you understand every bit of fine print in your agreement with the builder to avoid serious difficulties.
8) Documentation: Documenting the acquisition of a home for first time home buyers is best done in consultation with a competent legal professional as it can be modified to reflect your specific needs and concerns if needed.
9) Financing options: Most first time home buyers in India opt for a home loan to finance their acquisition. Though most financing options may portray an identical picture, you should know that each financier has a profit maximization objective. Understanding the fine print is therefore critical to peg your cost of finance at affordable levels.
10) Understanding common areas: First time home buyers considering high rise structures should educate themselves on the concept of ?common area?. Some builders do offer a differential pricing for ?common area? since much of the amenities provided in the carpet area offered to you do not apply to the common area.
This article originally appeared on commonfloor.com