If you are buying a home or taking the first steps in real estate, it is important that you follow the golden rule of suitability, affordability, and availability. Now, that you have decided to buy a home, here are a few things that, you must keep in mind before buying a home.
Affordability: Never overboard the budget while buying a home. Knowing, how much can you stretch while buying a home is important? The rule of thumb says that banks can lend you up to three times of your annual income on a mortgage. But, ideally, there is no point owning a home if it takes on you financially and you will not be able to come out of it.
So, how much should your EMI be?Your home loans repayments should not be more than 35%-40% of your monthly salary. Do not borrow more than what, you can afford to repay.Also find out:7 tips to get the best home loan offer
Availability: Having worked on the budget, make sure that you pick a place where homes are available. If the area you want to move into does not have homes or plots easily available, but you want to move into the location because of its placement; be a little flexible. Keep a watch, read the ads, ask the realtors if there is something available.
Suitability: the most important factor that you need to consider is suitability. If the home you like is in the proximity of your daily needs, workplace and fits in your budget do go for it. And, does it have enough space to let your family grow into it? Also, before buying the home always weigh of facilities like:
Supermarket and grocery: It is not always possible to bulk up on daily needs over the weekend. So ensure that the home you pick is in proximity to grocery stores and they deliver the goods to your place.
Schools/ hospitals: Is there a school and a hospital that is good enough? If you are a working parent ensure you have a day care near your home
Accessible: is your home close to the metro station or local transport? Do you have any relatives and friends nearby? Are parks, restaurants, and shops near to your area?
Location:Other than the three golden things, you must remember that location is another important criteria. It is so because, you can mold and change the home as per your need but, you cannot move it. Always consider the probable development that might happen in the area before you book a home. Property prices surge with, developments in the neighborhood.
Pricing: Before buying the property, find out the fair pricing of the area by, looking up on different portals and comparing it with a property in the neighborhood.
Lastly, we all love the home, we stay in and consider it as a place to stay in and not an investment. But never rule out the option that, if you had to move out someday, how soon can you sell the house.
You are now ready to buy your dream home!!
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