“Home is the nicest word there is.” -Laura Ingalls Wilder
A house is a place where one finds peace and feels a sense of belonging. Whether a house is rented or bought, it slowly and gradually starts to become a home. Therefore, when you venture out to buy a new property or a house, there are a lot of things that you need to understand before you take the plunge. Buying a house is not a joke and a lot of money; in fact your whole life’s savings are probably involved in buying a house.
Along with money, your house will be a treasure box of all the memories that you will make and carry all through your life.
Also, whatever property you buy today should fetch you double returns tomorrow, such should be your understanding of investments. Selecting a property isn’t a cakewalk and it definitely won’t happen in a day’s time. Like they say, Rome wasn’t built in a day; similarly property hunting isn’t a one day job. You have to be dedicated in finding the best house as per your requirement while also concentrating a lot of other factors that may affect your purchase.
Let’s have a look at a few steps that will help you in hunting for a fabulous house!
Decide on why you want a house
First and the foremost decision that you need to make is whether you really want to buy a house. If the answer is yes, then ask yourself why do you want to buy a house?
Generally, there are only 2 reasons for someone to buy a house. First being either to RENT it out and second being to LIVE IN it. When you buy a house to rent it out, your area of focus will be a lot different than a house bought for moving in yourself.
When you look at a property with the eye for an investment, there are a few factors that you need to consider:
- If you’re looking for a stable monthly income through your property, then you will have to select a property in an area that would give you a good rent and where the residents of that area would be willing to pay the rent as you quote (more or less).
- If you’re a person who is more into long term benefits, then you would prefer to buy the property in an area that has scope to develop in the future.
- Deciding on whether you want long term benefits of stable monthly rent depends from individual to individual as not everyone’s needs are the same.
Priorities change completely when you look for a house for yourself and your family. Here are the things that you need to think of if the house is for you and your family:
- Parking space
- Lift facilities(if an apartment)
- Cleanliness around the whole space.
- Kids friendly
- Close to your workplace
- Not very far from school (bachelors-you will have kids one day)
- Basic necessities like groceries, fruits, and vegetables should be easily available.
- Safety and security
- Neighborhood and the kind of people who reside there.
Set a budget
Know exactly how much money you can spend on a house as of now. Calculate your savings and also your cash flow. Also understand that in case if you opt for a HOME LOAN, would you be able to make the required down payment? Would you be able to pay the monthly installments of your loan? It is a rule that your home loan EMI should not cross 35% of your monthly income.
You also need to consider any other debt obligations that you may have and therefore decide on a budget based on that. This is what DSR or debt Service Ratio is all about.
If you already have a debt to pay and even then you decide on buying a house, you need to be absolutely clear regarding your cash flow on whether you will be able to pay back all your debts on time or not.
Become a search engine yourself
While this may be a hectic procedure, you have to do it if you want a good house. Nobody can do your work better than you yourself.
You could start by asking around in your friend circle or people you know if they know any good properties for sale in your desired area. A lot of information is available these days in electronic media and print media. You have to go through all of them and make a list of your favorite ones so that it becomes easier for you to go and personally visit those properties.
Decide on what kind of a property you want
It becomes very important to decide whether you want a posh property or a medium-ranged one. All of this will take place on the basis of your budget.
Also, a decision has to be made whether you want a fresh property that is either barren land that you will later construct on, a semi constructed house or will you be fine with a sub sale property? Deciding on this is an absolute individual choice. Once all of these questions are answered, and then comes the actual drill.
Be sure of the location
Always weigh your needs against the location of the property. For example, it would be completely stupid to buy property far away from your workplace.
You have to find a house close to all the important areas of your life like the workplace, schools, hospitals, markets, etc.
Touch and feel the property for yourself
Now that you have the list ready of all your shortlisted houses, you need to take out time to visit and inspect each and every property personally and probably ask a family member or friend to accompany you. After all you have to spend your entire life there! The best way is to start imagining you living in that house and start thinking from a resident point of view. Move into the space mentally and your work will become much easier.
Seal the deal mentally
After the whole house inspection process is done, you have to finalize a single property and seal the deal in your head. Once you’re already partying in your thoughts, you need to simultaneously start thinking about all the legal things that will follow whether it is checking out the authenticity of the property or negotiating prices with the seller. There is definitely a long road ahead but you will definitely get through it!