Choices that Shouldn’t Make the Lives of Homebuyers Difficult but They Do
Sep 16, 2019 Home Trading Steps
Whether one is the first time home buyer or a regular investor in the real estate, there are certain choices that homebuyers make that seem easy but are not. Choosing wisely and taking the right steps is the key to the right investment in the real estate sector.
We list down things that seem easy but are not:
1. Choosing the brand:
Many believe that choosing an unknown or a small-time developer will be better over a reputed developer. Since it is easy to negotiate with a new developer and the prices they offer for a unit are pocket-friendly, most homebuyers fall for it. However, choosing a small-time developer is a risky investment. With no previous record of their work, one has to believe every word that the developer is saying blindly. While choosing a reputed developer will cost you a bit more, but it will also assure you that your investment is in good hands. ‘
2. Having a co-applicant:
Most banks and finance companies prefer to have a co-applicant for a home loan, so there are no chances of loan default. They even give many advantages as to why one must have the home loan co-applicant. In the long run, it is not favorable to have a co-applicant. If one wants to take another loan, then both the applicants are tied down with the existing loan. Also, if in case any dispute arises in the future, the co-application of the home loan can cause unnecessary hassle.
3. Undervaluing the property:
Most people underestimate the property to pay less tax and stamp duty without thinking of future implication. One forgets that if in future you will have to sell the said property, then you will have to find the buyer who will agree to undervalue it as well. In the long run, it does not give any gains, but you will be making less money from the sale as well.
4. Being self-reliant:
Home buying is a complex process with lots of paperwork and the need to keep an eye on detail. Doing everything on your own, to save money, and not hiring an agent, will only lead to stress. An agent will not only you in finding the right property but will also help you in doing the paperwork so that the entire process of home buying goes smoothly.
Home buying is a process that needs a lot of careful consideration, to make sure the entire process benefits you, one needs to ask for help and understand the pros and cons of the approaches.
We list down things that seem easy but are not:
1. Choosing the brand:
Many believe that choosing an unknown or a small-time developer will be better over a reputed developer. Since it is easy to negotiate with a new developer and the prices they offer for a unit are pocket-friendly, most homebuyers fall for it. However, choosing a small-time developer is a risky investment. With no previous record of their work, one has to believe every word that the developer is saying blindly. While choosing a reputed developer will cost you a bit more, but it will also assure you that your investment is in good hands. ‘
2. Having a co-applicant:
Most banks and finance companies prefer to have a co-applicant for a home loan, so there are no chances of loan default. They even give many advantages as to why one must have the home loan co-applicant. In the long run, it is not favorable to have a co-applicant. If one wants to take another loan, then both the applicants are tied down with the existing loan. Also, if in case any dispute arises in the future, the co-application of the home loan can cause unnecessary hassle.
3. Undervaluing the property:
Most people underestimate the property to pay less tax and stamp duty without thinking of future implication. One forgets that if in future you will have to sell the said property, then you will have to find the buyer who will agree to undervalue it as well. In the long run, it does not give any gains, but you will be making less money from the sale as well.
4. Being self-reliant:
Home buying is a complex process with lots of paperwork and the need to keep an eye on detail. Doing everything on your own, to save money, and not hiring an agent, will only lead to stress. An agent will not only you in finding the right property but will also help you in doing the paperwork so that the entire process of home buying goes smoothly.
Home buying is a process that needs a lot of careful consideration, to make sure the entire process benefits you, one needs to ask for help and understand the pros and cons of the approaches.
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