Planning to buy your first house? Here is what you should know to avoid errors
The buyer should consider several aspects before finalising the house.
Buying a house is once in a lifetime investment. So, it is always wise to play safe while purchasing a home. To ensure you that your experience is not a bitter one, buyers should consider several aspects before finalising the house and also be careful of mistakes people tend to make. One should note the following steps before buying their dream house -
1. Through an Agent
Hiring an agent will surely accelerate your home buying process, cutting down on time. An agent can send you listing directly from multiple listing service (MLS), send you listings that are still not known in the market and filter listings that are overpriced. Further, some agents also provide with the facility of previewing homes for the buyer.
2. Finalise the property
As a buyer one should make up their mind about the amenities and necessities to accompany with their property. One should not exceed more than seven options to choose from, otherwise which will in turn create a headache for the buyer.
3. Loan
Apply for a loan before you look for a house, as this way one knows the budget limit for property prices. Often many sellers will not consider an offer as they do not have an assurance if the buyer can get a loan or not. For first time buyers, FHA loans are a better choice as the minimum down payment is lesser than conventional loan.
4. Negotiate
Do not make the error of comparing prices of several properties. This is because the seller can quote any price they wish to. Moreover, if the property is being vied by several buyers then you might have to pay more. An agent can come to aid by providing you a reasonable price range and negotiating.
5. Inspection
A must step before one finalises a property. Take a house tour to look out for faulty foundation, leaks and cracks before giving the seller a green signal.
6. Tax Structure
The buyer should be aware about the latest tax structures by the GST Council. According to the same, the under construction residential projects as on March 31 2019 will either have old structure with ITC or to shift to the new 5% and 1% rates devoid ITC.
Devang Varma, Director, Omkar Realtors states said,"Indian real estate key to Indian economy contributes almost 6-7 % to its GDP. The sector today employs more than 5 crore workforce and has a potential of generating 25 lakhs jobs per year reason being the government’s decision to house every Indian by 2022. Secondly, with landmark initiatives taken by the government be it RERA, GST, Demonetisation and Benami transactions Act, has resulted in increasing the confidence levels of buyers, investors and developers as well."
"The initiatives taken by the government on regular intervals has ensured steady momentum to the sector be its new launches and sales. The increasing positive consumer and investor sentiment international investors, be it PE or FIIs are eyeing to invest in Indian real estate which is giving further impetus to the sector," he added.
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