Investing in the Real Estate Property
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 realize 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.
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