Checklist for first-time homebuyers
Before choosing a property, do your market research and map expenses
Rising property prices and speculation within the realty market has been troubling millions of firsttime homebuyers. The gradual increase in prices has led to a big rise in the amount of money that first-time buyers spend on mortgage repayments. This vulnerable group of buyers, that is often forced to look at suburbs and peripheral districts near big metros for an affordable housing option, faces other challenges too. These include construction delays, absence of regulation, property transaction frauds and non-disclosure of certain terms and hidden charges that come their way at a later stage of project construction.
While first-time homebuyers cannot do much about regula- tions, they can at least take a wise and an informed decision to make the most of their first home buy. If you are a prospective first time homebuyer, there are some precautions that you need to take:
Before you enter the market, conduct your own research by consulting friends, relatives and real estate experts to find out a decent affordable project. It is advisable to map your expenses before you take the plunge. Select the project, where you see execution will not be a problem and you will get your property within the stipulated time frame, as promised in the sale agreement. Always keep in mind that the price tag of a house includes your other overheads such as club membership charges, fire- fighting charges, power back-up charges, charges for an additional covered parking space and other government taxes. If you are looking for a mortgage, select the tenure of your loan as per the amount that you can shell out on your equated monthly instalments. Go for a constructionlinked payment plan, as it safeguards your payment against any delay in construction and non-completion. Buy as per your repaying capacity while keeping in mind the income increments in the near future. It is advisable not to stretch your limits beyond the repaying capacity, even if it means that you have to give up the dream of buying a bigger apartment at this stage!
Lastly, read the fine print. It is often seen that problems arise because certain charges are hidden within the finer specifications of the property, and you do not understand the product (read project offering) and its pricing well. Consult an expert in case of any confusion. It is better to be clear than sorry at a later stage.
MD, RICS South