10 Tips For First-Time Home Buyers in India

Easy availability of cash money, economic growth coupled with healthy disposable income makes the young Indians to consider real estate investment. P Chidambaram, at the budget of 2013, raised tax deductions up to 1 lakh for the new buyers. This has greatly promoted the housing sector.

As per the recent survey conducted by the real estate industry, the average age of first time home buyers in India has reduced from 39 to 30. So, if you are a first time homebuyer, you need to consider important tips. While the socioeconomic status, the age and profile of the home buyers is changing, what is not changing is the trepidation and hesitation that comes with taking such a huge investment decision.

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However, it is great to know that a buyer is free to file a Complaint about Builder in India, if the project is not completed timely. Check out the home buying tips below.

Financial planning is the foremost

Before you make any investment decision, you need to plan out your finances. Try to review the current financial obligation like life insurance, student loan and any other commitment in order to get the true picture of monthly income. The budget for purchasing a property is based on the money which you may afford for home loan EMI. Apart from money reserved for EMI, you also need to have a saving account to cater necessary expenses. There must be money for parking charges, medical expenses and sundry expenses.

Assessing the future needs and objectives

When you plan to invest in a home, you need to assess present needs along with the future needs. Some individuals just want to buy a property for the family members while others wish for capital appreciation of the long term investment. So, when you make an investment, try to assess your objectives.

Know about the interest rates

If you are a first time buyer, you will be confused between floating interest rate and a fixed interest rate. Those who want a complete peace of mind, they can choose a fixed interest rate since the rate of interest remains constant and same throughout the tenure. But then, if you are interested in floating interest rate, evaluate the market along with the current economic situation. Get in touch with your financial adviser to know the kind of interest to choose. In fact, you can also choose the mixture of fixed and floating interest rate.

Improve your credit score

If you want to avail loan at lower interest rate, you need to improve your CIBIL score. CIBIL score plays a very crucial role in the application process. The moment you fill up the forms, the lender checks your credit report and the credit score. Your loan will be improved if credit score is good.

Shop around for loan

To get a loan suitable for your situation, you need to shop for the loans by checking various lenders and compare the rate of interest. Compare loans and negotiate with the banks.

Getting a pre-loan        

Pre-approved home loan refers that the bank has carried out its due-diligence check on the credit report and has confirmed virtually to the loan. The purchaser gets the idea about his budget and thus he can proceed confidently towards the purchases.

Get to know about the locations

Before making an investment, know about the locations that are experiencing growth. It must have a good connectivity and must be in close proximity to shopping malls, airport, railway stations, etc.

Evaluate the credibility of the builder

Check out the past projects of the developer and judge the credibility. The quality of construction and the value of his rate of appreciation need to be found. Get in touch with the past clients and avail Feed backs about Builders prior to choosing any. To save yourself from posting Complaint about Builder in India, this is a necessary step.

Payment option

Before signing the dotted lines, enquire about the payment options. Check out whether the builder offers construction liked payment, time linked payment or cash and cheque payment.

Verifying all the documents

Go through all the legal documents involved with the property sale and purchase. It is always better to get in touch with a real estate agent to make sure everything is smooth.

As the first time buyer, you will benefit a lot from the above tips. For the home buyers, it is necessary to read the Feed backs about Builders and then make a choice.

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