To invest in real estate is a big decision, even more so for a 1st time home buyer. While setting sights on the dream property, there are many apprehensions that buyers face. Here are a few tips to avoid errors in judgement while investing in real estate –
1. Going ahead and planning a strategy:
Buying a home must never be a spur in the moment decision. The reason for buying must be clear in your head. Is it going to be your family home or an investment for returns? It is necessary to do a thorough research on the real estate market for property rates, types of localities, reputation of builders, and then accordingly plan your next step towards investing.
2. Doing everything single-handedly:
You may think that buying a home is something you can manage on your own. However, it is not advisable to make all the decisions single-handedly. Seek advice from members of your family or from someone in your circle of friends who may have bought a home recently. Do some research online and get familiar with policies like RERA which protect the interests of the buyer in the home buying process. It is good to seek professional advice to erase technicality errors and receive all the necessary documents while acquiring a home.
3. Avoid hasty and emotional decisions:
While you are surfing through properties, avoid getting attached to one on the first sight. Make a list of requirements that you expect in your future home and constantly check if the property you survey matches those expectations. Take your time to evaluate all options and make a wise decision.
4. Being unaware of your credit score:
Another after-effect of an uninformed decision is that you shake on the deal, then you go to your bank and realise that the bank can’t fund the purchase due to your lacking credit score. To avoid this scenario, it is advised to clear all your previous loans the first chance you get, keep the credit score lean while looking for your dream investment.
5. Skipping research on how debt works:
Taking a loan with an initial down payment is the most common mode of transaction for buyers in real estate. A new investor might try to pull off a higher loan debt for a single property which results in a larger payment. You should ideally pay returns by obtaining a debt at a lower interest rate with a larger down payment.
The task of buying a home is crucial with long term implications, so it is important to cover all the bases. At House of Hiranandani, we guide you through the process of buying a property with utmost diligence. We offer apartments in Chennai, Bengaluru & plots in Hyderabad.