Right Way to Buy Homes from Real Estate Companies in Delhi

Investing in residential and commercial property in Delhi, Mumbai, Bangalore, and other cities can be seamless if some common mistakes are avoided

Mistakes First-Time Homebuyers Should Avoid

Buying a home for the first time is one of the most exciting moments in one's life, but it can also be complex and confusing. If you are unaware of the processes or ignore the best practices, it can cost you your time, money, and peace of mind.

Take note of these mistakes that first-time homebuyers tend to make and avoid them when making your first home purchase:

Not Getting Pre-Approved Mortgage: The best residential properties by real estate companies in Delhi-NCR, Mumbai, Bangalore, and other cities command a premium price and are in high demand; therefore, it is important to get a pre-approved mortgage. The initial check allows the lender to evaluate your financial situation, like your credit score, income, debts, and savings, based on which they can determine your capacity to borrow. This also helps you to set your budget before you begin your journey for house hunting and speeds up the loan approval process once you find the right home.

Overlooking Hidden Home Expenses: Apart from the list price of a property, several other hidden costs have to be taken into account from the beginning so that you plan for your budget accordingly. Following are some examples of the costs that you should plan for:
Brokerage Fees: If you are using a real estate agent, they will charge a fee that varies anywhere between 0.5% to 5% to the property cost.
Stamp Duty: The cost varies from state to state, but on average, it ranges around 3 to 7% of the property value.
Registration Fees: In most cases, the cost is at least 1% of the property value.
GST: Currently, it is applicable in under-construction buildings at 5% without Input tax credit.
Society Maintenance Fees: These are the monthly charges needed to maintain the common and shared areas.
Utility Expenses: These expenses include the installation of electricity, water, gas, and internet connections.
Insurance: This is paid periodically (generally annually) to protect your home against any loss.

No Research of the Neighbourhood: Before investing in any real estate, be it residential or commercial property in Delhi, Mumbai, Pune, etc., always check if the neighborhood is easily accessible to your workplace, schools, and marketplaces. Apart from that, another crucial factor is how safe the neighborhood is. Once these things are taken care of, you’ll feel a lot more confident about your investment.

Ignoring the Importance of Home Inspection: Assessing the home before finalizing it should be a top priority. Thoroughly examine the construction style, electrical system, water supply, and state of walls, floors, and ceilings. Also, check the property's condition regarding dampness, termites, rodents, and other pests.

Apart from keeping the above common mistakes in mind, it’s also important to follow the following best practices while planning for a house purchase.

- Always keep your budget in mind. Even if the bank offers you a huge loan, don't spend the entire surplus. Save that amount for emergencies and future expenses. Be well aware of your budget, and don't get swayed away by homes that are way beyond your means. Stay aware and practical about your needs and limitations.
- Keep asking the broker or agent questions and clarifying your doubts. Be sure and clear about everything, from the property to the mortgage terms and conditions, and the buying process.

Buying your first home can be smooth and memorable if you are well-prepared. Avoiding these common mistakes will help you buy your dream home and secure your future.