Mis­takes to avoid while buy­ing a house

First-time home­buy­ers should not be in too much of a hurry to in­vest in property. Take your time, study the mar­ket and then make an in­formed choice

HT Estates - - HTESTATES - HT Es­tates Cor­re­spon­dent

There is no feel­ing in the world that can com­pare to mov­ing out of your par­ents’ house or rented ac­com­mo­da­tion and buy­ing a home of your own. And while the real es­tate mar­ket is cur­rently very much in favour of buy­ers — buy­ing a home as soon as you can af­ford to can some­times be a mis­take.

Some of the mis­takes many first-time home­buy­ers com­mit can have se­ri­ous reper­cus­sions on the value that they are fi­nally able to ob­tain from their property pur­chase. Be­low are some of these mis­takes:

Not check­ing out all the op­tions

Due to limited knowl­edge of the lo­cal real es­tate mar­ket or de­pen­dence on a bro­ker with a limited port­fo­lio, we choose a home merely be­cause it fits our budget. There is a sense of help­less­ness in­volved, we wish we had more op­tions, but there do not ap­pear to be any. This is a patent mis­take. In any large city, new projects are be­ing launched reg­u­larly and fresh op­tions on the re­sale mar­ket be­come avail­able al­most ev­ery day. Any of these projects or units could rep­re­sent a bet­ter deal.

Of­ten, we suc­cumb to pres­sure of the real es­tate bro­ker and ac­cept that even this par­tic­u­lar unit will be gone within a cou­ple of days. If one is us­ing real es­tate bro­kers at all, it makes sense to en­gage more than one of them as the spread of op­tions in­creases dra­mat­i­cally.

In­flex­i­ble fo­cus on ready-to-move-in

In any grow­ing real es­tate mar­ket, un­der-con­struc­tion projects are cheaper than ready-to-movein prop­er­ties. In many cases, the lo­ca­tions and spec­i­fi­ca­tions of these projects are su­pe­rior to any­thing that is cur­rently avail­able.

If one has been liv­ing in rented ac­com­mo­da­tion for a con­sid­er­able length of time, opt­ing for an un­der-con­struc­tion flat and wait­ing for a year longer can make a huge dif­fer­ence in cap­i­tal ex­pen­di­ture as well as over­all com­fort and life­style. You could have the ben­e­fit of a larger home and the ad­van­tages of bet­ter se­cu­rity, a club­house and a swim­ming pool for the same price that a nor­mal readyto-pos­sess home would cost you to­day, says Kishor Pate, CMD,

Amit En­ter­prises Hous­ing Ltd.

Fail­ing to get home loan pre-qual­i­fi­ca­tion

Few people buy a house these days with­out bar­gain­ing with the de­vel­oper, nor should they. This is a priv­i­lege that ev­ery as­pir­ing home owner has, and one should make use of it.

How­ever, at­tempt­ing to ne­go­ti­ate with a de­vel­oper with­out be­ing able to demon­strate ac­tual pur­chas­ing power is a mis­take. There are two es­sen­tials for suc­cess at the ne­go­ti­a­tion ta­ble — a down- pay­ment and pre­qual­i­fi­ca­tion for a home loan. These two fac­tors com­bine to give the de­vel­oper suf­fi­cient rea­son to take the buyer seri- ously, and of­fer a bet­ter deal. With­out them, he or she could be just an­other ‘win­dow shop­per,’ says Pate.

If your job is con­trac­tual in na­ture, make sure you take into ac­count your other as­sets in case you are not able to pay your equated monthly in­stall­ments on time. A lender gen­er­ally takes into ac­count such risks, the num­ber of years you’ve been with a com­pany etc be­fore fi­nal­is­ing a loan.

Not f ac­tor­ing i n your fam­ily’s growth

A sin­gle bed­room flat or even

MART OF IM­AGES

Be­fore buy­ing an apart­ment, check if you are qual­i­fied to get a home loan and if you will be able to af­ford it in the long run, es­pe­cially if you have a con­trac­tual job and no other as­sets

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