In Indian culture, owning a home is a significant moment in one’s life. It signifies the end of a person in their wild, free youth into someone ready to settle down for good. Everyone has their dream home image and works hard to make it a reality. However, purchasing and owning a home is not a simple process. There are a lot of factors one needs to consider before purchasing a home. This post will take you through the multitude of factors that you should keep in mind while considering purchasing a home.
Before buying a house, the most important aspect is deciding how much you are willing to spend on it. While coming up with this figure, it is important to be cautious and realistic, depending on your current circumstances. Generally, spending more than 30% of your salaried income on loan payments is not recommended since it would tie you down to a job and isn’t flexible. It also puts you at risk if some unexpected expenditure comes up, like a medical emergency. Hence, if you feel like you may not have the budget for your ideal home yet, there is no shame in waiting for the right time to buy your dream home.
- Figuring out your Ideal Location
When choosing a location, it’s important to know why you’re buying a home. Is it to become your dream home where you wish to settle down, or is it to rent out as an additional source of income, or is it an investment? If you’re starting a family and buying a home, ensure it’s in a safe locality with good schools and other activities in the area. If you’re looking at it as an investment, then check if the area is developing and will be a popular hub in the future.
- Check out Many Options
Once you have settled on a budget and locality, the process of looking at different options begins. This may seem like a long and tedious process but give your home the time and attention it deserves. Owning a home is a huge commitment, and you would not want to have a single thing to regret about it. Hence, it would be smart to look at as many options as you can while comparing what you like and dislike to settle on one with all your desired features finally.
- Look for the Best Home Loan Rates
Another factor to consider when buying a home is looking at the economy’s general state. If the economy is in a slump, the banks will lower interest rates to encourage people to borrow and invest more. This would be the ideal time to apply for a home loan as the interest payments would be minimal.
- Prepare for a Down Payment and EMIs
Once you settle on a loan that works for you and figure out how much your monthly payments would add up, it would be smart to set up a separate pool that always has enough for at least one future payment. However, most home loans usually have around 20% of the principal amount as a down payment. This may mean living slightly under your usual means until you save up the down payment amount, but it will not last long.
Other factors to consider
There are some other things to consider before finally deciding on which home to purchase. It can help find a home with a good resale value if you don’t feel like settling and may want some more flexibility. Another important factor is the stamp duty and registration fees. These are essentially sales taxes that you must pay the government to purchase the home. They vary from state to state and sometimes even area to area, so factor these into your budgets. Finally, ensure that you get property insurance to protect yourself against potential damages.
I hope this mini-guide was useful and will help you make informed decisions before purchasing your own home. Brick&Bolt specializes in construction and can provide transparent and quality services if you wish to build your home from the ground up.