Whether you are buying a house for the first time or if you have been doing it since long, you might not have realized certain things that can impact your home buying decision. And, this is where most of you end up spending on a wrong house and regret later.
Although, buying a property is not an easy task and requires a hell lot of mental and physical work, but if you keep these 9 most important things in mind, you can never go wrong.
1. Do Not Fall In Love With What You Cannot Afford
House hunting is a tough task in itself. But till the time you are looking a house within your budget, it is easier. The moment you fall in love with something you cannot afford, becomes a problem. You get confused and you get diverted from your focus. Also, if you spend out of your budget, you are more likely to take a loan and pay a higher interest rate.
Imagine when you spend an extra 1,00,000, you are supposed to pay more interest on your home loan and extra tax.
2. Do Not Take Hasty Decisions Else You Will End Up Buying A Wrong House
In desperation, things might go wrong. And it can also happen when you are buying a house. Searching for an accommodation that meets all your expectations is not easy. And, if in a haste, you end up buying the one you do not like, it can put you in the following situations:
- High costs involved when you want to get rid of it
- High brokerage costs
- Ignoring flaws initially will have repercussions later in life
3. Price Should Not Be The Only Deciding Factor
Will you be open to buy a house which is in your budget but lacks connectivity or is unsafe to reside? No, right?
So, do not just consider price as the deciding factor, instead keep these important things in mind:
- What is the crime rate in the neighborhood area, opinion of the residents and newspaper reports
- Connectivity through public transport like bus stand or a metro station
- Sources of noise pollution like factories, train station, etc.
- Proximity to important places like hospital, super market, petrol pump, etc.
4. Consider Future Rather Than Just Thinking In the Present
Always plan for future. Because a house is not something that will be for a few months. You need to have future planning in place while looking for one. Like, if you are planning to have a family later, ensure, it has a school nearby. If you are keen on joining a gym, ensure the area has a decent sports club or a gym.
5. Avoid Other Major Spends
You know you are already investing a handsome amount of money in buying a house, would you want to be bankrupt by spending on other expensive things? Like if you are uncomfortable and still buying a new car, it can put you in a financial stress. So, always, prioritize your expenses and then take a decision.
6. Do Not Furnish Before You Buy
Until you have got the possession of your home, do not spend money on buying a new furniture. It is tempting and you might get excited but wait till you own the house. Spend wisely.
7. Refrain From Over Or Under Bidding
You have to take a decision to balance your needs and wants. Although, deciding on how much to bid is a difficult task but you need to balance between the need to make a fast decision with the need to make sure you have bought the right home.
8. Do Not Buy Home Insurance Based On Market Value
Rebuild value is lesser than market value. Never consider the market value while buying a home insurance as it may be higher because it considers the location of your house too. While insurance only covers the rebuild value which means the value of money needed to rebuild your house from scratch.
9. Get The Appliances Insured
Buy insurance for your television, refrigerator, laptops, washing machine, and other appliances. Also, keep in mind the insurance money is an additional cost while deciding on buying a property.
Refrain from these 9 mistakes that many people do. And, you will realize you have made a smart decision.
Take a look at this comprehensive gifographic by tomorrowmakers on home buying mistakes.
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