6 Vital Things To Keep In Mind Before You Buy A House

Are you ready to buy a home

Are you ready to buy a house? Was the decision to move from a rented home to an own space taken after considering all the pros and cons of your investment? Have you saved enough to pay for the down payment and also to meet any other expenses?

When it comes to buying a house, a lot of effort has to go into learning about the property, and after that, planning the finance. Firstly, it’s a big investment you are making.Secondly, it’s a long term financial commitment.

Sometimes, a home buyer makes the mistake of buying a house without understanding the need or requirement. Also, in some cases, people hurry to buy a house due to an immediate need. Some people buy a house just to keep up with their friends or relatives.
So, before you decide to buy a house, have a real reason why you should own a house. It would be helpful to get ideas and thoughts from friends and relatives who have bought a house. Ask them questions about home buying and learn from their experiences. How did they choose the house? How did they overcome the anxiety and stress related to buying a house?

Apart from the ideas you can pick from your friends or real estate agents, here are some points that can help you buy a house.
Plan well in advance

When you’re buying a house, you’re also shouldering a big financial responsibility. This means you should set aside money for making down payment, then paying monthly mortgage fee, and also money to take care of day-to-day needs and other emergencies. Ideally, you should plan ahead and save for a longer period.

Don’t purchase if you haven’t settled in a place

If your job requires you to move to different locations, or you still have doubts about settling in a city, then delay the purchase decision. With high transaction cost, you may end up losing money if you sell in a short span of time.

In other words, you should plan to live in a house for a period of ten years before reselling.

Buy a house you can afford

Don’t fall into the false sense of enlightenment which is all pervasive in this modern world. They are mostly ego driven, too concerned about the status, and the excessive desire to lead a glamorous life. Having bigger houses, deluxe finishes, exotic interiors, all come with a big price tag.
Often, many home buyers just want big penthouses, or luxury apartments just to impress others, or boost their egos. When you buy a house with all the trimmings of luxury, then ensure you have the income to set aside to living and also for saving.

Scale down approach is the best

Instead of overly stretching your budget to buy a luxury home, buy a house that fits your budget. First, draw a table of your income, expense and evaluate your financial health. This won’t take time. Now, you’ll be able to know how much you can spare to buy a house and then have a comfortable balance to save for the future.

Investigate the neighborhood

Don’t go by the words of the real estate agent. Do some homework on how this place will change in the foreseeable future. Also, access the current facilities around it, and the projects that will shape the outlook of this place.
If you’re purchasing in an expensive locality, where price is already saturated, then short term returns is likely to be minimal.

Opt for fixed-rate mortgages

The best part of fixed-rate mortgages is that the interest rate fluctuations will not affect your monthly budget. Before you agree on the mortgage terms, find out:

  1. The period of the mortgage
  2. Interest rate throughout the term
  3. Initial costs and fee related to mortgage
  4. If the interest rate is floating, then learn how they arrive at the new interest

Final thoughts...

Avoid taking a fast, hasty decision. Always buy a home for which you can comfortably pay the mortgage, and have spare money to save, invest and enjoy your life.

Author bio:

Bharath Joshi a Marketing Executive at Unishire Belvedere Premia. We began with an aim of redefining real estate and creating benchmarks for others to follow, that provides German life style luxury apartments in Bangalore and Condominiums in Bangalore

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