Buying a home is one of the most important financial decisions that you will have to make in your lifetime. It is a huge investment which will take a significant chunk of your salary and savings. While buying a home for you and your family is a part of everyone’s dream, there are several considerations that must be taken into account before you make this huge decision.
Here are 6 things that you need to consider while buying a property.
Home loan EMI
When you are considering buying a property, the monthly EMI to be paid has to be taken into account. It is imperative to ensure that paying the EMI amount is not forcing you to compromise on other basic needs that are important. Your EMI should be 40 percent of net household income if you don’t have any other loan that has to be paid back.
Property value and home loan interest
It is necessary to take into consideration the rate at which the value of the property will appreciate. In the future, if you decide to sell your home for any reason will you receive a profit from it? For this, the value of your house must increase at a higher rate than the interest rate you are paying on your loan. If you pay an interest of 10% but the house is appreciating by 6-7% then it is a bad investment.
Duration of your stay
Buying a home is a sign of stability but if your job requires you to travel a lot or if you plan to move out of the city in the near future then buying a home may not be the best choice for you. While reselling and renting your home out are viable options they come with their own set of difficulties. Therefore it is important to consider the duration of your stay before making this huge investment.
Beware of damage costs
Investing in real estate is looked upon as a good investment opportunity and as such a lot of people are buying homes with the intention of renting them out. However have you considered the negatives that come with this? While the monthly income from rent is attractive one must also ensure that the property does not get damaged by the occupants or else the repair cost that would be incurred can be very high.
Property details and on-time completion
Quite possibly the most important thing to ensure when you are buying a property is who you are buying it from. Is it a reputed builder? Are all the necessary documents and permissions taken? Is the project going to be completed on time? If the answers to all these questions is not yes then you may want to look for another property as the problems and costs associated with this can make buying the house a nightmare.
Peace of mind
When you decide to buy a home, you are buying a place for you and your family to grow and flourish, however you might risk this satisfaction and happiness if you are compromising on things that should take priority like getting your children admitted into a good school, medical care expenses, etc. It is important to ensure that nothing important is being compromised to ensure peace of mind during this time.
While there are quite a number of more things to consider these will get you in the right mind set when it comes to ensuring that you are buying the best property for you. So go ahead, immerse yourself in the details and have fun finding your dream home.