10 Tips And Tricks for Home Buyers
Like a major project, a successful home-buying experience means getting the information right from the beginning until the end. These tips will help you navigate the process, save money and close the deal.
Determine your budget for a new house.
Before you start looking for a home, figure out how much you can afford. The Headways Realty home affordability calculator will assist you in determining a price range based on your salary, debt, down payment, credit score, and desired place.
Carefully choose a real estate agent.
A good real estate agent will search the home market that meets your requirements and guide you through the process of negotiations and closures. Get referrals from other recent home buyers from MAHARera registered real estate agents i.e Headways Realty. Interview at least a few agents and ask for references. When speaking with potential agents, inquire about their experience working with first-time homebuyers in your area and how they intend to assist you in finding a home.
Observe your financial plan.
What do you do for the majority of your monthly earnings? How much do you spend on rent, groceries, going out, shopping, and entertainment? Begin by analysing this. Make a budget by categorising your expenditures and determining how you invest your money. You don’t have to do it manually in this digital era. There are several apps available to assist you in creating a budget. You can monitor your spending by comparing your revenue to your expenses.
Other Expenses Should Be Considered.
There are further out-of-pocket expenses in addition to the down payment. Stamp duty (between 5% and 7% of the property value), registration fees (at least 1%), memorandum of title deed charges (0.1 percent of the loan amount), interior lighting, electricity, and water supply, to name a few. In addition, there are brokerage fees, legal fees, home insurance, and so on. Although it may be difficult to account for all non-loan costs precisely, make an educated guess and plan accordingly (your EMI savings, discussed in the last point, will be of great help).
Why Is It a Good Time to Buy a House Right Now?
Floating rates are linked to the MCLR of the bank. The MCLR is a dynamic indicator that changes in response to changing macroeconomic conditions. The MCLR is influenced by the Reserve Bank of India’s (RBI) Repo Rate, which is the policy rate that influences all loan and deposit rates in India. A rise in the Repo Rate could lead to a rise in the MCLR, increasing the home loan’s interest rate.
The central bank cut the repo rate by 35 basis points in August 2019, the fourth rate cut in a row. As a result, some banks’ MCLRs have begun to fall, lowering home loan interest rates. As a result, if you apply for a home loan today, it is likely to be less expensive than it was a few months earlier.
There are also tax advantages…
Repayments on a home loan are tax-deductible. You can demand up to Rs 2 lakh in interest paid on your home loan under Section 24 of the Income Tax Act per financial year. You can also demand up to Rs 1.5 lakh per financial year on the principal repaid under Section 80C. Buying a home isn’t easy, but putting it off might not be a good idea either. Yes, your income will rise in the future, but so will your expenditures as a result of increased financial obligations. So, educate yourself and learn how to effectively handle your finances. You will have to make some sacrifices as well, but it will all be worth it once you have those coveted keys!
Home loans can be compared.
To narrow down your choices, compare home loans on third-party websites in addition to investigating the type of home you want to purchase. If you want a floating rate loan, interest rates start at 8% + p.a. and are normally indexed to the bank’s MCLR (Marginal Cost of Funds Based Lending Rate). Fixed interest rates begin at 9% plus p.a.
Other factors to consider include processing fees (0.25 percent to 1% of the loan amount), pre-closure fees (up to 5% on fixed-rate loans), and late payment fees. When you compare all aspects of a home loan plan, you will get a better idea of how much it would cost you to borrow.
Before you even consider purchasing a new home, consider the size of the house.
If you’re buying a house for yourself, it’s important to consider your family size and choose the appropriate home size and number of rooms.
If you’re a young couple or newly married, keep in mind your potential room needs when looking for a home.
If you’re buying a house from Headways Realty solely for investment purposes, choosing the right size is important, as a house that is too small or too big would be difficult to rent out.
Time to Take Possession.
This is crucial in determining your requirements. Homebuyers can choose between ready-to-move-in and under-construction homes. The latter provides some breathing room in terms of the installment schedule.
Those looking to buy real estate through Headways Realty as an investment should purchase one when it is still under development, as they would profit from substantial price appreciation by the time possession is handed over. However, it is mandatory to verify that the contractor has all of the required permits, certificates, and licenses (to avoid delays in project completion times or unnecessary complications).
Buy a Home best time during Festive Season.
To attract buyers, developers have gone to great lengths. For the holiday season, extremely lucrative offers have been made available, with many of them resulting in a reduction in the cost of acquisition. These offers have an expiration date – when the housing market regains enough traction, they will be withdrawn.