A majority of first-time home buyers are from the generation born during the eighties and nineties, millennial’s who are recently married or just started new families. For this generation, buying a home for the first time and making such a huge investment is certainly a vital decision. This generation has seen the real estate industry boom and has also seen the volatility of the housing market from afar. Fortunately, the earlier generation which has used some tried and tested methods to successfully invest in the real estate market, is still around and can guide the newer age bracket in a similar manner.
Let us explore them in brief:
- Cannot afford it yet? Don’t buy it yet!
If you are unable to take the plunge into the real estate market and affordability is the issue, don’t let your family or peers pressurize you into taking a decision too early. You may have recently taken up a job or your industry could be facing a slump, so take your time till you feel comfortable funding that EMI.
- Take an informed decision
Now that you have decided to invest in a home, make sure you put in time to research and understand everything that there is about the neighbourhood, the city and the amenities around it. Get expert advice if required and refer to property sites and forums to know as much as possible. Connect to a professional realtor who is bound to have all the intricate details about the property you are about to buy.
- Don’t overpay
Although buying a home is an emotional decision, don’t let emotions rule as you could stretch your budget unknowingly. Overpaying for a home in the hope that the market will appreciate and increase it value, can turn out to be a costly mistake in the long run. Explore market prices before making a decision or better still, ask a professional realtor to evaluate the same for you.
- Impatience will not speed up the process
If you have applied for a home loan, bide your time patiently without making umpteen enquiries at the bank. Your credit score will be evaluated, your income sources will be checked and background checks will also be needed. All these steps take time so hold your horses for a while. For a good credit score, it is important to make credit card payments on time and paying other EMIs regularly. Missing payments will have a direct impact on your credit score and your bank may reject the application or charge you higher rates due to the low credit score.
- Buying a home isn’t the only cost you will incur
Homeownership comes along with a host of costs and you will do well to factor in the same. Monthly EMIs, monthly society maintenance, water charges, property taxes, home insurance and the cost of running a home add up to a tidy amount. Make sure your income will be able to support these expenses before taking the plunge for a stress-free life in your own home.