Buying a home is always a dream for everyone, especially in India, where purchasing a house is always considered one of the most significant achievements in someone’s life. But you need to finance your home smartly, which requires proper planning, informed decisions, and long-term thinking. Earlier in the 1970s and 80s, only people aged 40 and 50 were financially able to buy properties, but now the time has changed, with too many loan options due so this now people in their 30s have easy access to home buying. Moreover, nowadays there are so many real estate agents who can help you in deciding how you can finance your home.
Below are the points which you can keep in your mind while planning to buy your dream home
Pre-Purchase Planning
Keep Eye on Your Financial Health: You must check your financial health before taking decision of buying your dream home. Evaluate your income, expenses, savings and current debts.
Save Some Money for a Down Payment: You should aim to save at least 20% of the property value for the down payment. The more down payment you will pay, the lower the principal loan amount, which will lower your monthly EMI if you are going for a loan option.
Budget for All Costs: You should keep in your mind there will be many other expenses also like stamp duty, registration fees, processing charges, property taxed, insurance etc. You should have your budget set accordingly.
Check Your Credit Score: Keep an eye on your credit score also keep your credit score at least 750 or higher it will help you for securing competitive interest rates. Pay your bills, EMI on time. Avoid taking any new loan before applying for home loan.
Choosing the Right Loan
Compare Loan Options: Before applying for loan and choosing any bank or lander you should compare interest rates, processing fees and repayment flexibility. Even a small difference in interest rate can save you a good amount of money over a long tenure.
Choose an Optimal Loan tenure: Always choose loan tenure as per your requirement if you can payback your loan in short time then you should go with shorter loan tenure in this EMIs will be high but you will get significant savings on total interest. On other hand long tenure provides lower EMIs but a higher overall interest burden.
Consider Floating Interest Rates: Try to go for floating interest rates because floating interest rates are often lower than foxed rates and have no prepayment penalties for individual borrowers. This allows you to save more money when market rates fall.
Check Government Schemes and Tax Benefits: You should keep an eye on government-backed schemes, also as Pradhan Mantri Awas Yojana in India, which may give you interest subsidies.
Smart Repayment Strategies
Keep Your Payments Regular: Whenever you have surplus funds like annual bonuses, tax refunds or maturity of any investment use those amounts wisely and make partial payments towards the principal amount. This will reduce your outstanding balance and shortens the loan term.
Increase Your EMIs with Rising Income: As your income grows, don’t forget to increase your monthly EMI payments. This is one of the most effective ways to reduce your loan tenure and save on interest.
Maintain an Emergency Fund: Make sure you don’t exhaust all your savings on the down payments or on other expenses. Keep some emergency fund covering at least 3-6 months of living expenses to manage unexpected financial challenges.
Use Joint Loans Strategically: If you will apply for a joint home loan with spouse or family member can increase your eligibility and potentially offer higher tax benefits to both applicants.
In the last few years real estate sector has been booming and evolving at a very high speed, and one of the most difficult decisions for homebuyers continues to be whether they should go for a ready-to-move-in home or invest in a plot or land and construct their dream home on their own. This question depends on your lifestyle, financial status, investment goals, and risk-taking capacity. There are many real estate builders or real estate companies to help you out in deciding whether you should buy a ready-to-move-in property or under under-construction property.
According to the FICCI–ANAROCK Consumer Sentiment Survey H2 2023, buyer preference for ready-to-move and new-launch homes has almost equalized, with the ratio standing at approximately 23:24, down from 46:18 in H1 2020. Ready-to-move properties normally attract those people who are seeking immediate possession and zero construction risk, while under construction or land or plot continue to attract investors and price-sensitive buyers.
Let’s compare between ready to move and under construction properties to help you decide which suits you more:
Ready to move in properties: As the name suggests, ready to move in properties are those properties that are completed residential units and available for immediate possession after purchase. In these properties, buyers can physically inspect the house, construction quality, and move in without any delay. There is no risk of project delays or any increase in cost as the project is already completed, but GST will not be applicable.
Under Construction Properties: On the other hand, under construction projects are the properties that are still in the construction phase and offer a longer possession timeline, but at an affordable entry price, as the property is still under construction without any modifications. In these properties, buyers get payment flexibility, and buyers have the chance to customize certain aspects of the house. But these under-construction properties have a risk of potential delays, a change in project specifications.
Home under construction
Ready to move properties pros.
1. Immediate possession: No waiting period, good for those who needs a place for immediate live now.
2. Lower Risk: Less risk of construction delays or project cancellation
3. Rental Income: Good for rental income you can start renting out space as soon as you move in.
4. No GST: No Need to pay GST on the ready to move property
5. Better Loan Options: Normally ready to move properties have favorable loan options as most of the banks are ready to offer you loan.
Cons:
1. Higher Price: Ready to move properties are generally more expensive as property is ready and seller add their margins also.
2. Limited customization: There is no option to customize your property as it is already built
Under Construction Properties Pros:
1. Lower Price: Under-construction properties have a lower purchase price compared to ready-to-move properties, especially if you buy early.
2. Chance of Higher Potential: There is a chance that the price of your under-construction property can rise as the surrounding area develops.
3. Flexible payment plans: You have the option of flexible payment over the construction period.
4.Customization Opportunities: It gives you a chance to customize certain things or areas as the property is still in construction mode.
Cons:
1. Delay in Construction: Delay in construction is possible as the project can longer than expected.
2. Higher Risk: Under construction properties have more risk as the cost can overrun, project delays or even cancellation.
3. GST Applicable: You will have to pay GST, which can increase; on the other hand, on ready-to-move properties, you don’t have to pay any GST.
How You Can Decide:
Keep in Mind your Timeline: If you need a place to live immediately then you should go with ready to move in property on other hand if you can wait you can go with under construction.
Check Your Budget: If you are going for ready to move in property then you need a large upfront payment and if you are going for under construction property you need less amount in starting as payment schedule can be flexilbe.
Your Risk Tolerance: If you are a risk taking person and can wait long then you can go for under construction property and if you dont want to take risk of delays or cancellation then you can go with ready to move properties.
Recently, the Indian Government announced a reduction in GST slabs, which means things will get cheaper for consumers. People will now enjoy lower rates on many things like electronic items, clothes, food items, and especially on real estate sector. The government reduced GST on cement from 28% to 18% which means it will lower overall construction costs approximately 3% to 5% for developers. It will help ultimately homebuyers who will save up to 1% to 1.5% depending on the project stage.
But one thing here to keep in mind for the homebuyers is that these new GST changes are only applicable on under-construction properties, not on ready-to-move-in properties.
What Homebuyers should now:
Reduction in material cost will benefit you: As government has reduced the GST slabs from 28% to 18% this will reduce the cost of materials like bricks, tiles and sand which are reduced to 5% from 18%. Builders will save money from this change of rates as their construction cost will come down and they have to pay less amount for construction, but its not like you will see an immediate price cut in your home price. Real Estate Dealers or Real Estate companies may offer festival discounts to pass on a portion of these savings to buyers.
GST Exempt on ready to move houses: There will be no GST on the purchase of a ready to move property either its house or flat. As that is already received its occupancy or completion certificate.
Reduced prices on new project launches: By reducing the GST rates developers will get benefit from lower construction costs, because of this competitive pricing or attractive festive season will be offered by developers. For existing under-construction projects, developers may offer discounts instead of direct price cuts.
Cost for Stamp Duty and registration: Buyers must keep this thing in their mind that GST has not replaces stamp duty and registration charges, they will remain same according to each state policy.
GST on additional services: If you are opting for amenities like parking, clubhouse or any other maintenance that will attract GST which is typically 18% if the bill will generated separately.
For developers: Lower costs and clearer rules
Reduced construction cost: Builder will get benefit from GST on key building materials like cement has been cut from 28% to 18% and on other hand items like marble and granite now carry 5% GST instead of 12%. This will lower overall project cost by 2-4%.
Healthy Margins: Due to cut in GST on many items like cement, marble and other items will improve their cash flow and ability to invest in n new projects.
Mixed impact on commercial property. While residential projects benefit, the commercial real estate sector faces mixed implications. Developers lose the ability to claim Input Tax Credit (ITC) on commercial leasing, which could increase operational costs and rental prices.
It is no secret that the homebuying process nowadays is intimidating and stressful. You must check several things before buying your dream home. Your personal financial information, income, and credit score are under a magnifying glass! This complete process makes the homebuying process more stressful. You can take the help of real estate experts who can help you find the best home for you.
Fortunately, there are several methods to make your journey much more enjoyable. These 10 homebuying tips will surely lower your stress level.
Keep An Eye on Your Credit Score
Your credit will play an important role in your homebuying journey. Before you start your property buying journey or even interview real estate agents, make sure you check your credit score.
Many online sites can help you in your house-buying journey, or you can consider going directly to the source and request a copy of your credit reports. Those reports will give you an idea of how your credit score is currently. Read those reports very carefully.
If your credit score is good, then you can take your next step of meeting real estate agents, but if your credit score is low, then work on it before getting too involved in the homebuying process. You can get a mortgage despite your low credit score, but make sure you improve your credit score by paying your debts and waiting until your credit score improves.
Develop an ideal down payment amount
You should have an idea and proper management about how much down payment you are going to pay. The higher down payment amounts may be technically “better”, as you’ll pay less over the life of the loan. But make sure you must plan properly to avoid any conflict and shortage of money for your rest of expenses.
Have Clear View on how much you can afford
While you’re thinking about an ideal down payment amount, you’ll also want to consider how much you might be able to borrow and what amount you’re comfortable with in relation to your monthly budget.
You must understand that you should create a balance between your expenses and income or else it will give your stress as you move further in your home buying process. If you’re unclear on where to start, don’t stress! A finance professional can help with any specific issues.
Stick to the budget
This is one of the most important step which you should keep in your mind because sometimes we emotionally fall in love with a home that’s firmly outside your budget. If you want your home buying process stress free you should stick to your budget so that you don’t have to borrow from others.
Create a list of Your Wants and Needs
You should know the difference between your needs and wants don’t get confuse between this. Sometimes we focus more on things which are not necessary but we buy it. So sit back take pen and copy and note down your needs and wants.
Be specific what you want in your home. If your need is only for 4 bedrooms then stick to your need and use that saved money at other place like on wood work or floor. Don’t go for 5 bedrooms if you need only 4.
Do Your Research Before Buying
Before buying your dream home do your research properly. Check out small things like your neighbourhoods near by facilities like hospitals, schools, market etc. If the property which you want to buy is nearby you and you can visit it regularly keep visiting on regular basis so that you can know more about your neighbourhoods.
Keep Your Paperwork Ready Well Ahead of time
Be ready with your paper work make sure you should collect all required papers way before. It will keep your stress level in control as buying home is a process which needs lot’s of paper work.
Be Picky When Building Your Home Buying Team
Buying home is one of your biggest dreams so make sure you choose your home buying team very carefully. A talented home buying team will make sure you get your dream home within your budget and in best area. Don’t stick to one team keep exploring your options and choose the best from them.
Get Pre-Qualified from Your Loan Originator
Make sure you must be in touch with your loan originator. Ask them to run credit check so that you must be clear about your credit score. Keep that credit score in your mind so that you will have an idea how much you get through loan and how you will manage rest amount. It will help you in controlling your stress.
Never Forget the Inspection
Never forget the final inspection make sure you check each and everything before making final payment. Inspect structural, electrical or plumbing problems these are some major issues which you should check before shifting to your dream home.
Final Thoughts Your dream home buying process should be exciting and rewarding not the stressful. So keep these points in your mind before buying specially your budget part.
Real estate agents play a crucial role by helping buyers and sellers navigate one of the most important financial transactions of their lifetime. The world of real estate can be a competitive environment that can be difficult to understand for you. So, if you’re looking for top real estate dealers in Mohali, you may need to know where to start.
In this blog post, we’ll discuss some of the most important qualities to look for in real estate dealers before you sign any agreement. Let’s not waste a moment and get started…
Strong Communication: Before you look for experience and expertize, it’s important to know if the agent can communicate effectively. A good real estate agent should be able to listen carefully to your needs and have healthy communication with colleagues and other industry professionals.
The Ability to Negotiate: Negotiation is a big part of real estate especially when the team has to haggle between the listing price, the selling price, and the commission. A real estate agent has to learn negotiation skills to help you pay the best price against any property you buy. The property buying or selling process is a very involved process.
A Strong Network: Real estate is all about networking because, without solid connections, your agent won’t be able to be a successful real estate professional. The ability to network will help you find the best properties in Mohali at the best price possible. A good real estate company will maintain healthy relationships with fellow professionals.
In-Depth Market Knowledge: Real estate is one of the highly competitive markets in India and having a deep understanding of market trends is a must-have. Before you sign an agreement, make sure that your real estate company has in-depth knowledge of local market trends, regulatory requirements, and property values.
Integrity and Trustworthiness: Remember that you’re going to trust someone to convert one of your biggest dreams into reality. Buying a living space is everyone’s dream and agents should prioritise ethical conduct to build credibility with their clients. Make sure that the platform you choose is licensed and holds high ethical standards.
Tech Savvy: Technology has become an integral part of our daily lives and plays an imperative role in the modern real estate industry. The credible top real estate dealers in Mohali embrace technology to streamline processes and provide superior customer service. This may include virtual tours, data analysis, and digital platforms for property listings.
Client-Driven Approach: It is you who is going to put a lot of money into buying something and your needs should be the first priority. A credible real estate company will take personalized approach to understand your unique needs to provide tailored services. Moreover, the team will be ready to go that extra mile to exceed your expectations.
A Back-Up Plan Ready to Execute: The real estate is a complex world with lots of challenges be it transactions, rules and regulations, or local market trends. Whether it is resolving financial issues or navigating legal hurdles, agents should be able to think fast and troubleshoot all obstacles. They must ensure a smooth transaction process.
Credentials and Qualifications: Real estate world is highly competitive and there are hundreds of real estate companies out there ready to help you. However, not all are qualified enough to help you find your dream property. So choose an agent who has completed more than the basic requirements and is experienced enough to serve you the best.
Great Reputation: One of the most important qualities to look for in a real estate company in Mohali is the image or rapport. Choose a company with a strong image in the real estate world. Take your time to know about the company and online reviews can be your best source. Go through some client testimonials or look for references.
A Few Tips to Find the Top Real Estate Dealers in Mohali
Knowing the qualities of a real estate agent won’t be enough, so here we’ve discussed some tips to find the right one for your dream project. Take a look…
Find the Agent With the Most Listings: One of the simple and passive ways to find the right real estate dealer is to identify which company has the most listings in your area.
Research and Interview Multiple Real Estate Dealers: Don’t just settle for the very first broker you meet but take time to interview multiple real estate dealers in your area.
Consider a Dealer’s Areas of Expertize: Some real estate dealers may have more experience working with domestic properties while others may be specialized in commercial properties.
Pay Attention to Responsiveness: A good real estate agent should be responsive to your needs and always ready to help. They should be able to explain the buying and selling process.
Takeaway
Whether you are looking to buy or sell a property, real estate companies play a crucial role in making the process much smoother. Therefore, when looking for top real estate dealers in Mohali, it is important to take some time to research.
Ask for referrals and look for a real estate broker with a strong track record and experience in the field. Also, they should possess great communication skills and technology proficiency. Ensure that the dealer is licensed and insured.
Choosing the right real estate dealer will make all the difference in your experience. When you know that you can count on the platform you have chosen, the process will be far more enjoyable. At the end of the day, your efforts to choose the best platform will get you the best results.
Home Portal13 is one of the top real estate dealers in Mohali specializing in professional real estate advisory services. The team is always ready to guide you through buying, selling, or renting the best properties in the area.
Want to get more tips to find the best real estate company in your area? Stay tuned…
