Buying a house

July 25, 2007

house1.jpgOwning a house is dream for everyone. Its an emotional decision for everyone.  People shouldn’t get carried over by their emotional thinking. They should learn to use their rational thinking in the process of buying a house.

If you’re a first time home buyer you should definitely look into few aspects that could possibly help you to understand the necessity of owning a home for your family.

                                               

Rationality before buying                      

1. Can you afford to buy?      

Most of the buyer’s dreams are just having a house than thinking logically whether  its needed or not. So they need to know whether they could afford to buy?                 

2. Is this best time to buy?  

Buyer needs to ask themselves whether time has really come for them to buy a property. 

They need to know how many years they’re going to stay in a place where they are buying. They also need to know the market condition of a particular place before entering into any transaction. They shouldn’t enter at high cost and exit at low cost.       

3.Owning Vs Renting?         

Person must know whether its better to own a house or go for rent.

Going for Rent

1. Could understand about the pricing patterns of a particular place

2. If a person is always mobile in his job, taking a house for rent could be the better option.

3. If you’re staying for rent, there won’t be need for you to pay for different charges that relates to managing a house. If that happens it could be adjusted with rent.

4. Unable to manage loans that could possibly need to deal while buying a home.

Going for own

1. Its an asset

2. It could possibly help you to deduct taxes since, home loans are deducted

 

4.Is it possible for me to make regular down payment?

 

Going forward this is going to be crucial question for any buyer of home. Research shows that most of the homes are purchased through home loans. While paying down payment they might be facing huge problems by sacrificing their lifestyle, their travel plans, few good things for kids and others. So buyers must have to think twice about their ability to pay down payment.

 

5. Home buyers regret?

 

I might be getting similar type of home less than a lakh. I could be getting a home near to railway station for same amount.

You could hear few noises like this. Buyers should clearly find real sources to make meaningful decision before going to make payment for a builder.

 

6. Choosing a Lender?

 

This is definitely a crucial issue for any buyer before working out budget for buying a home.

 

7. Location Checklists

 

Before choosing a place a buyer must have few checklists to face day to day events that are important for him

1. Amenities

2.Transportation Facilities

3.Commute times i.e., a place should be near to his/her office, school/college near to their kids and others

4.Crime Rates

5.Schools/Colleges                                            

6.Community Services                                      

7.Economic Stability  

                                               

8.Old and New   

                                   

New Construction                                             

PROS                                       

Contemporary style                                           

Some flexibility on design during construction phase                                           

Cheaper to maintain (new appliances = fewer repairs)                                        

Cheaper to operate (energy-efficient Construction)                                             

A cohesive neighborhood (consistent layout, common areas)                                           

The smell of fresh paint                                    

CONS                                       

Higher price (upscale amenities, current construction costs)                                           

Limited negotiating room on price                                             

Risk of shoddy construction

Frequently less character or homogenous design

Old Construction

PROS

Availability: More choices, more styles to choose from

Lower price: It’s not new anymore

Price may be more negotiable

Track record: Many repairs already made

Established neighborhood

CONS

More maintenance: Things break or wear out

Less energy-efficient: More costly to operate

Dated design, older appliances and amenities.

Generally smaller bedrooms, bathrooms, and windows

 

We welcome comments from experienced home buyers.

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