For those buyers who have bought and sold a property, they have a fair bit of idea how to avoid common mistakes. But for the first time buyers it is better to avoid some of the mistakes one naturally makes. Buying a house is quite a financial commitment and one does not want to spoil the party .
Working the budget is the most important part before buying a house. You see a house and you love to buy it. You work on the budget and find that it overshoots your financial planning. But you love that house- remember and your are all out to buy it. Put a brake on it. The financial planning you worked out may not be strict. There may be some loose ends and in the long run you will find the payment difficult. It is better to pick a house which is less than the budget estimated.
Aahha! the future:
You never know what type of financial commitment you will be pushed to, in near future.You may have prepared a budget keeping the present scenario in mind. But when you get married and find your kids running in house., you suddenly think about his education expenses and additional expenditure you may face. Medical expenses is also a key part. Keep that in mind. Your parents may depend on you in near future and you have to meet the expenses. Vacation and holidays also make things expensive. Buyers forget these future expenses and commit themselves.
Forgetting market sentiments:
Everything is about supply and demand in real estate. When the condition favors sellers, if your have the patient and time, stall house buying. Time will come where you can bargain for a good price and save in lakhs when the market is dull and favor buyers. Do some research and weigh your options and be armed with information, so when the time is right, you can strike a good deal.
When you forget the resale value:
You buy a spacious house in a remote area at a cheap rate. You are happy now. But things not are constant. World changes every second. Transfers, sudden change of plan may force you to sell the house. Resale value of the house is vital and any house should have a good resale value.
Don’t forget the rental value of your house. Rental value far below the EMI your paying is not advisable.
Don’t completely believe the real estate broker.
Brokers may give you lot of advice and will talk about a house which he is selling with a coat of sugar. He will talk about the positives of a property and good things. It is your duty to do a background check on the property on your own and get the facts right.
Oops! I forget the hidden cost:
Talking on the phone to buy a house, you usually enquire about the size of the house or a flat and rate per sq feet. Then you go and visit the house only to find that you have to pay for car parking, registration charges, VAT, service tax, development charge. It overshoots your budget and you find that you have wasted you time.
Haste makes waste:
Inspecting the house in the dark and taking a look at the house in haste, only to find that you have not seen it properly. Inspect hall, kitchen, bedroom carefully and try to arrange your household things in your mind and visualize. This will give you a better idea of the space availability and good understanding of the house.
Just keep these points in your mind before hunting for a house. You will feel the difference.