10 things a first time home buyer should keep in mind – A comprehensive Guide!
19 Mar 2018
Buying your first home is not something you should take lightly. It is one of the most significant financial decisions you’ll make in your lifetime. It takes a lot of search, effort and time. You should be prepared for as much information about as you can learn if you are first time home buyer. And here, we have listed 10 things a first time home buyer should keep in mind. Here, have a look at complete first time home buyer guide!
1) Decide location before searching for a home
Location plays a very important role when you are searching for a new home. For a fact, the price of an apartment varies according to the location. For example, if you are buying a home in a location that’s pretty noisy and not well maintained, then you will get a lower price for the same space that will be 5 times more costly if it’s situated in a greenery-filled and cleaner place.
While going to check the new home, make sure you check a few things:
Location, traffic, noise from neighbours, pets, ease of access, as well as access to schools, shopping, parks, and public transportation.
Anything can be changed in your home except the location. If you are comfortable with the kind of surroundings, amenities and neighbours around the home you are planning to buy, then, it’s the right time to go ahead.
2) Check property registration
Property registration is a process of registering the documents related to your property according to section 17 of the Registration Act, 1908. When you register the purchased property, you need to pay stamp duty and registration charges for the same.
When you purchase a flat or property directly from the builder, the registration of property gives you the right to legally use, own and dispose of the property. And when you purchase a flat or property which is being transferred from one hand to another for the second time, you will have to pay stamp duty and registration charges.
So, make sure there are no disputes in the past and register the property in your name with the proper agreement.
3) Check building plans for the neighbourhood
Checking building plans for the neighbourhood is very important. You may do not want to stay near the place where construction usually happens or an amenity will be constructed nearby that is not of your use.
For example- A couple bought a new house and they learned that a playground will be constructed right next to their house. And since they had no children and playground is no use for them, though the squeaky sound of swings annoy them.
Thus, make sure before buying a house, do check if there are any building plans near your house to avoid annoying surprises after you’ve moved in.
4) Reserve some cash for home improvements
People save money to invest in real estate or to pay for their new house, but they often forget to save some cash for home improvements. When we shift in a new home, we need furniture, good interior and to get the exact look we desire, cash is required. Even if the home is well furnished, then again some backup cash is necessary
5) Start planning for buying a home and save thousands
When you start planning to buy a home for a long time, make sure you start planning what other things you want in your home, colour combination and interior. Planning for a long time helps you buy affordable products and interior pieces for your home that are well researched and price checked. And if you will think of decorating your home after moving into your new home, you will be in rush and would invest in costly products and interior.
Find smart money by getting a loan through a non-profit organization that had agreements with several lenders to give first time home buyer loan. But, for that, you will need to do proper research as to where you should take the loan. So, start planning long before
6) Check facilities and amenities
When you invest your hard earned money in real estate, you must check it is invested in something that will be fruitful to you in future. And to get the profit out of it, check the facilities provided to you and amenities that are around the home you are planning to buy.
Even if you are not buying the home as an investment, just check whether, school, universities, malls etc are nearby. After all, a person shifts to a new home to live a good life and facilities are must for a good and comfortable life.
7) Real estate as an investment
Investment in real estate is the best option. It can generate a constant income, and can also be good for long-term investment if the value increases gradually. According to the trend of rising real estate prices over the last few years, the price of the real estate you may shortlist will most likely to keep going up as you wait.
India is one of the fastest growing countries due to a number of supportive factors including a large number of high paying white collar jobs and world-class physical infrastructure. The real estate prices in India have grown to astronomical heights leading to the growth of adjacent cities as large companies shift.
8) Additional benefits you can claim on home loans (first time home buyer loan)
A home buyer can claim home loan tax benefits for principal repayment and the paid interest. These principals qualify for the tax deduction under the section 80C of the Income-tax Act, 1961. You can also claim a deduction of up to Rs 2 lakh on home loans for interest payment under section 24(b) of the Act.
If you are a first time home buyer, you can claim an additional tax deduction of upto Rs50K/ financial year. This rule comes under the section 80EE of the Act. This is an additional benefit for first time home buyer loan.
9) The Windows and Lighting
Ventilation is important in an energy efficient home. There are homes where you just feel suffocated and staying there becomes a struggle for you. And you just cannot do anything about living in the suffocated home after buying it. So, when you got to inspect the apartment, do check the ventilation, windows and lighting.
10) Fire escape
A fire escape or extinguisher plan turns out to be very important, but it is often ignored. This safety device plays a vital role in keeping us safe. Creating an emergency fire exit or evacuation plan in a building is something that has become the necessity. Thus, you must check whether the building you are thinking to invest in gives the facility of fire extinguisher.
So, this was first time home buyer guide that you should keep in mind while investing or buying a home.