In India, many people aspire to buy a new home. However, only a few accomplish their dream, as it requires them to put in hard work and be financially sound and committed. So, if you are planning to purchase a new home, as a first-time home buyer, you must be extra cautious and know the various processes involved.
Buying a new house would require your time and commitment. You must assess your financial condition, determine the budget, set long-term goals, etc. If you are planning to buy this house to stay there with your family for a long time, you would want to do it right. Your first home must cater to your family’s needs in terms of value, living space, location, etc., and it must be future proof.
Given the complexity of buying a new home, as a homebuyer, it can be easy to feel overwhelmed. So, to help you with the process, we list a few handy home-buying tips.
Consider the size of the house
Whether you are buying a 1st home or a second one, the size of the house matters a lot. And when it comes to choosing the right home size, you must weigh in different factors. First and foremost, you must consider the budget. Next, you must consider the number of family members living in the house today and tomorrow. Lastly, you must be sure about the purpose of buying the house. Is it an investment or for self-use? Knowing the answers to these questions will help you choose the right home size.
Significance of floor rise
Today, many real estate builders levy a higher rate for flats located on the higher floors of the building. This means the flat located on the first floor could be cheaper than the flat on the 10th floor or above. So, as first-time buyers, you must be aware of this factor, and you must make a wise decision whether you want to buy a home on the lower floor or, the higher floor, even though the size may be the same.
Consider the type of house and the amenities provided
Today, many builders develop different types of houses. As a homebuyer, you have plenty of choices. You can buy any house to suit your needs and budget, from a studio apartment to a luxury villa. Also, you must decide if you want to purchase a pre-constructed property or build your own house as per your needs.
Just as important as choosing the home type, it is critical to consider the amenities provided. Modern homes have significantly changed the way people think of their homes. Today, most modern buildings or housing complexes come with an array of amenities like a clubhouse, swimming pool, gym, etc. Lastly, do not forget about the parking space. If you own a vehicle, you will need a space for it.
A good location is paramount
Many first home buyers make this simple yet critical mistake of not considering the property’s location and eventually struggle with everyday commute. So, if you are a first-time homebuyer, you must avoid this.
You can carefully choose the location of the house so that you and your family members can easily go to work, school, etc. Also, the place must have a good transport system and medical facilities nearby.
Apart from the facilities, when choosing a property’s location, it would help if you considered the neighbourhood. Choose a house in a quiet neighbourhood or near a market or a station, as per your preference.
Know about the costs involved
One of the critical mistakes that new homebuyers make while buying a property is that they jump into the process without doing their research or knowing about the various costs involved with purchasing a new home. You must avoid this mistake that first-time buyers make.
Whether you are buying a first home or a second one, you must understand that the property price is more than just what you must pay the seller or builder. There are other costs involved that you must bear. You must pay the GST, stamp duty, property registration fees, etc.
Stamp duty is one of the biggest expenses, and it ranges from 5% to 10% of the property’s value. It varies from state to state, and it is a mandatory fee you must pay the government. Besides, you must pay the registration fees, which are usually 1% of the property’s value.
Managing the funds for buying a home
When you want to buy a new home, you need significant funds. While you may have accumulated some savings, consider taking a home loan. Many lenders offer loans for first-time home buyers at affordable interest rates to help them accomplish their dream homes.
When you compare different loan offers from different lenders, it is advisable to take a loan from a reputed financial institution like Tata Capital. They offer loans at affordable interest, have shorter disbursal time, and provide flexible repayment terms.
Tax benefits on home loan
Applying for a home loan is a great way to get funds to buy your new home and enjoy valuable tax benefits throughout the loan tenure. Under Section 80C of the Indian Income Tax Act, you get a tax benefit of up to Rs. 1.5 lakhs in a financial year on repayment of the principal component of a home loan. You also get an additional tax benefit of up to Rs. 2 lakhs on home loan interest repayment under Section 24 of the IT ACT.
Conclusion
Being a first-time home buyer can be overwhelming. However, if you know the processes and have a clear idea about how to go about your business, home buying would be a walk in the park.
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