Se­ta­sides­ome‘ex­tra’money

You may have to pay stamp duty, bro­ker­age, le­gal ex­penses over and above the cost of your house

HT Estates - - HTESTATES - HT Es­tates Cor­re­spon­dent

What are some of the most dif f icult and emo­tion­ally stress­ful ex­pe­ri­ences in any person’s life? We can eas­ily list the top four: the death of a loved one, break­down of a mar­riage, change of jobs and buy­ing a home.

Does the last point re­ally be­long in this list? Ac­tu­ally, it does. Any­one who has ever been through the process of buy­ing a home will agree that there is a lot of in­se­cu­rity in­volved in such an op­er­a­tion. Peo­ple ask them­selves these ques­tions when buy­ing a house: Are we do­ing the right thing? Is this the right time? Is this the right area/neigh­bour­hood/flat? I liked the pre­vi­ous one bet­ter.

We must also not for­get about the stress in­volved in mov­ing to a new lo­ca­tion. Si­mul­ta­ne­ously, it of­ten be­comes nec­es­sary to get ac­cli­ma­tised to a new area where every­one is a stranger. Fi­nally, the ex­penses in­volved in buy­ing a home are eas­ily the big­gest fi­nan­cial re­spon­si­bil­ity any of us will ever shoul­der.

As a mat­ter of fact, it is not just the process of buy­ing a new home that can be stress­ful. Even leav­ing the old self-owned home be­hind can take an emo­tional toll. The ques­tions we tend to ask our­selves are: Will the new own­ers take care of this home which we lived in and cher­ished for so long? Will the old neigh­bours re­act well to them, and will they be good long-term neigh­bours? Of course, these last- men­tioned fac­tors are not ones over which we have any con­trol, but this does not re­duce the de­pres­sion or worry.

What we do have con­trol over is pre­par­ing our­selves for our new home. When the time fi­nally comes to sell your old home and buy a new one, you ob­vi­ously have to face the sit­u­a­tion squarely and pro­ceed. But the ex­pe­ri­ence of buy­ing a home need not be as stress­ful as it of­ten is.

Plan­ning the process care­fully gives you a psy­cho­log­i­cal edge, re­mov­ing a lot of the stress and frus­tra­tion. Such plan­ning makes sense in two other sig­nif­i­cant re­spects: Since buy­ing a home will prob­a­bly be the most ex­pen­sive pur­chase you will ever make, be­ing f i nan­cially pre­pared for all the costs in­volved re­duces the chances of un­fore­seen shocks. It is not some­thing most peo­ple do of­ten, so there are in­vari­ably stages at which we are caught un­pre­pared for lack of proper plan­ning. The process of find­ing and ul­ti­mately pur­chas­ing a new home should be based on plan­ning and pa­tience. It is all right to buy clothes, toys and other in­ex­pen­sive things on im­pulse - but buy­ing a home on im­pulse in­vari­ably spells dis­as­ter.

Con­duct­ing a c are­fully or­gan­ised mar­ket sur­vey can re­sult in con­sid­er­able sav­ings, both in mat­ters of fi­nance and heartache.You can con­tact a real es­tate agent, place your re­quire­ments and bud­get be­fore him, and al­low him to con­duct the search. You can (and should) ac­tively as­sist him in this, but be open to all op­tions that come your way and do not make im­pul­sive de­ci­sions. New homes should be bought with the head and not the heart, says Kishor Pate, CMD - Amit En­ter­prises Hous­ing Ltd.

Another as­pect of ef­fec­tive home­buy­ing is con­sid­er­ing all the ex­penses in­volved - not just the price of the new res­i­dence. There will be a lot of ex­tra costs to con­sider - down- pay­ment, stamp duty and regis­tra­tion charges, bro­ker­age, elec­tric­ity me­ter charges, le­gal costs, pack­ing and mov­ing, hous­ing loan EMIs, etc.

Pre­par­ing for all ex­penses gives you a clear idea of what you are do­ing, what you can af­ford, and in which ar­eas you may have to re­strict spend­ing money af­ter the home is bought. All things con­sid­ered, proper plan­ning will put you more in con­trol of the sit­u­a­tion, mak­ing the stress of home buy­ing eas­ier to han­dle.

THINKSTOCK

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