Buying a home is universally seen as an important step towards stability and success. As of 2018, a mere 28% of urban Indians live in rented homes, but homeownership is not an easy minefield to navigate. As a first-time homebuyer, you need to wade through the jungle of housing finance issues like mortgage payments, hidden costs, and paperwork. Do remember to avoid these 10 common mistakes on your journey.
1. Not Setting The Right Budget
Buying a house is not about spending as much as you can – you should be able to comfortably pay the monthly loan payment. Do not rely on a future increase in income and avoid being tempted by magnificent houses outside your budget.
2. Not Accounting for Hidden Costs
Apart from the housing loan, there is also the insurance premium, the home loan interest rate, property taxes, and smaller considerations like an increased electricity bill for a bigger house.
Additional Read: Hidden and Additional Costs Involved While Buying a New House
3. Looking Past Interior Inspections
Even if your home looks grand on the outside, you will be spending most of your time inside its walls, so pay attention to potential repairs that may add up substantially, such as plumbing problems and faulty electrical connections.
4. Not Inspecting the Neighbourhood
Look out for dirty streets or shafts (in the case of flats) which carry noise, since these can be detrimental to your peace of mind. You also need groceries, clothing, and recreational activities to live comfortably – make sure these services are available in your vicinity.
5. Not Considering the Home’s Purpose
If you live with a joint family or are newly married and looking to expand your family, do not buy a 1 BHK property. Along the same lines, buying a residential property to open up a shop is not recommended.
6. Overlooking Loan Qualification
The amount loaned to you depends on your annual income, your age, and sundry other factors. If you look for houses without confirming your housing loan, you may end up wasting time.
7. Expecting Perfection
As a first-time buyer, you should look for an optimal home, not a perfect one. Using huge swathes of time looking for a home only means paying rent for a longer period, which is not a profitable investment.
8. Not Thinking About The Future
Your home is likely one of your biggest investments, so consider if its value will rise in the future – will it be connected to a major metro station? Will the surrounding land be developed into malls and other popular sites?
9. Getting Carried Away
While it is necessary that you be satisfied with your purchase, your emotions should not completely sway you. A house which excites joy now can become a source of misery later if it does not match your requirements.
10. Not Choosing the Right Loan
If you do not consider home loans carefully, you can end up suffering losses both in the short term and the long term.
Additional Read: Want to Own a Home? Check Out How to Apply for Home Loan
Fortunately, Tata Capital provides home loan at the most attractive interest rates with high eligibility criteria. Avoid paying more for a mediocre house – with Tata Capital home loans and lower EMIs, pay less for your dream house!