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5 Tips For New Home Buyers In 2021
Year 2020 has witnessed the Real estate industry almost crash. The Year 2021 might see a bounce-back of real estate here are 5 tips to invest in a property in 2021
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Buying your own home is a dream for almost everyone. Also, Investment in property is always supposed to be a lucrative business with its numerous advantages like greater asset stability, tax benefits, hedge against inflation, etc. The year 2020 has witnessed the slowdown of the global economy due to Covid 19 pandemic and the Real estate industry almost crashed. According to experts, the Year 2021 will see a bounce-back of real estate and there will be increased investment in property.
I would like to give you some tips to guide you if you are planning to buy a new home in 2021.
1. Don't Make an emotional decision:
Your own high expectations and attachment to a certain property can make you buy a property that is not suitable in a financial perspective. Don't let the attachment dictate the underwritings of a purchase. Any transaction you purposefully walk into should be predicted only on numbers reflecting your budget and your valid expectations from the property. Provided you have conducted the appropriate research, you should have an idea of how much the home in question is worth. Your emotional connection should never empower you to pay more for a home than its actual worth. I recommend looking at several properties so as to prevent yourself from becoming too attached. With other properties in the equation, your mind can reason with sound judgment. Also, don't get affected by the opinions of your friends and relatives.
2. Don't be over-influenced by the market analysis:
The property market moves in cycles. There are times when it suits buyers more. And then it shifts to the realtor's market when real estate prices are booming. However, waiting for the right time or for prices to go down is like gambling with your decision and future. If you know your requirement, your budget, have your finances organized, and already thought about your current and future needs, then you should not let short-term market conditions influence what will be a long-term lifestyle decision.
3. Be meticulous with budget:
Set a budget before you embark on your home buying journey and make sure that you abide by it. You should purchase a home that you can afford in the long-term without jeopardizing your finances. You will not only be paying EMIs, but there are also some hidden costs like stamp duty, registration fees, GST, etc, and other associated charges like maintenance fees which you should never underestimate. Focus on buying a home that you can afford according to your current repayment capacity while repaying the loan in the long-term.
4. Don't neglect loan pre-approval before entering into the transaction:
Many first-time homeowners make the mistake of not getting the pre-approved loan for their purchase. A pre-approval of a loan from your bank goes a long way in securing the property you want. It is the best way to find out how much you can actually afford. Also, you get to know your loan eligibility. Getting pre-approval of loan means that the lender has looked through your financial situation and is comfortable with the idea of lending you a certain amount of money.
5. Don't give more weightage to the physical search of property:
Searching all the property physically consumes lots of time, effort, and money. The advent of technology and the internet has made this process a lot easier. There are several sites and apps with the sole purpose to help you find the right property. I recommend using these sites/apps as a tool to research property as opposed to conducting a physical search. KĀGAAY, which is India's first Gamified Sales first Enablement Platform, where you can not only search property but provides, 2-D and 3-D view, virtual walkthrough, bird's eye view, Google location, etc. KĀGAAY helps you to buy the right property at the right price and right location by conducting different events as flash sales draw of lots and e-auctions. The use of such technology is always a smarter option.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.