Check­list for first-time home­buy­ers

Be­fore choos­ing a property, do your mar­ket re­search and map ex­penses

HT Estates - - HTESTATES - Sachin Sand­hir

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


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