A first-time home is an asset often related to prestige by society and is perceived as an upgrade to economic status. Home buyers looking for flats for sale can now easily buy a new house with myriad options and affordable home loans. Purchasing a home is a unique experience for first-time buyers with excitement and anticipation. However, technical unfamiliarity makes one restless and anxious until the right deal is made successfully. Our first-time home-buying guide or home buying checklist will give you a clear picture of what to expect during your first time home buying.
There is a raise in demands for flats for sale in Chennai due to the stringent terms and conditions for the residential rental properties from the house owners, high rental charges in the metros like Chennai, Bangalore, Mumbai, and Delhi and with the suburbs picked up with the new rental slabs and the number of first time home buyers increasing every year. Owning a house is a dream that eventually becomes a reality with effective financial management, at the same time making the correct decision will ensure a harmonious and peaceful lifestyle.
Urbanization and affordable home loans accelerate the growth of Indian real estate. As per marketsearch.com the housing finance market is estimated to increase at a compound annual growth rate (CAGR) of 20.58% for FY 2022 – FY 2027. https://www.marketresearch.com/Netscribes-India-Pvt-Ltd-v3676/Housing-Finance-India-g32058738/#:~:text=The%20housing%20finance%20market%20is,the%20growth%20of%20the%20market.
The demand for affordable and luxury housing have increased, which reflects the home buyer sentiments and new home loan benefits in the residential property sector. Buying a house is an indispensable goal for the vast population as it offers a sense of pride, accomplishment, and emotional and financial security, just like higher studies and jobs, hence many want to buy home of their own that fits their budget. You can speed up their home-buying journey with this step-by-step home buying guide, which explains the processes involved in home buying process.
1. Decide on the Type of Home
Everyone has a dream about their first home, the number of rooms, spaciousness, amenities, and whether the house has a patio or not, but one must select the type of home primarily based on the financial pulse. Whether to go for an apartment or villa, 2 BHK/3BHk/4BHK apartments, buying a property is based on the number of family members also and few other factors as homes are available in the market to suit every budget and every customer preference.
2. Create a Budget
Planning your budget for house buying is a necessary first step, no matter the size of your funds or the cost you want to spend for the first time home buying. When you know how much you have and the amount you intend for the down payment, you can draw the boundary for the total investment on the home and ensure that it doesn’t exceed the limits and don't face any financial issues once the purchase is over.
3. Analyze the Market
The next step is to research the residential real estate market in the city/town where you wish to buy your first home. Get first-hand information on the location price from the existing residents during a house purchase to ensure the house is not quoted more than the actual price.
Flats for sale in Chennai – Location-wise price for luxury 2BHK, 3 BHK, 4BHK Apartments
|
Location |
Type of Property |
Price Starts From* |
|
Guindy |
Luxury Homes – 3 BHK Apartments |
57 Lakhs |
|
Irungattukottai |
Affordable Homes |
25.80 Lakhs |
|
Muttukadu ECR |
Premium Homes |
3.33 Crore |
|
Nungambakkam |
3 BHK Homes |
5.84 Crore |
|
Pudupakkam |
Plots |
20.63 Lakhs |
|
Tambaram |
Plots |
49 Lakhs |
|
Thiruverkadu |
3 BHK Flats |
67.8 Lakhs |
*Prices vary based on offer and availability of the units and amenities
4. Fix the Location
To buy a house for the first time or not, location is a prime factor to ensure that your new home gives the lifestyle you wish for and increased resale value of the property in the long term, which includes amenities, accessibility, and expression of a neighborhood and upcoming Government, public and private projects in the region, which will influence the property value in the future. Knowing the rent value during the home purchase will help fix the rent for your tenants if you have plans for renting out your first home.
5. Check Long-term Appreciation
Vicinity to basic and social amenities and services like schools, colleges, etc. Hospitals, restaurants, hotels, shopping malls, brick and mortar shops, bus stops, and road accessibility and development potential increase the resale value of your first home.
6. Find the Right Builder
Partnering with a reliable builder is essential as a builder is someone whom you not only trust your money with but also your aspiration about your first home with. You can buy properties for sale in Chennai with one of the top trusted builders in Chennai, VGN Projects Estates Pvt. Ltd who is a member of BAI and enlisted with CREDAI and follow ethical standards in real estate development industry and with heights of professionalism and expertise in dealing residential real estate for years we have been one of the most sought after builders for home buyers.
7. Get a Home Loan
Looking for affordable home loans goes parallel to the home buying process from the reputed builder, and having a good credit score allows you to get home loans for the lowest interest. Other factors that affect home loan approvals include age, income, work experience, credit score, etc. The EMI depends on the loan tenure and the amount requested, and one should make sure that the EMI doesn't exceed 40% of the monthly salary.
CIBIL score is a credit payment history of loan and other payments. As mentioned in the table when the score is higher the chances are higher for home loan approval.
|
CIBIL Score* |
Grade* |
Home Loan EMI* |
|
750 to 900 |
Excellent |
8.35 % |
|
600 to 750 |
Good |
8.65% |
|
550 to 600 |
Reasonable |
8.70 % |
|
Below 550 |
Poor |
9.35 % |
*The table is intended to give an idea about how credit score influence home loan EMI. The score ranges, grades and home loan interest differ between the banks and on many other factors.
8. Registration Fee and Stamp Duty, and Additional Charges
The home buyer should pay a certain amount to get their first home registered to their name after the purchase, along with stamp duty, sales, and property taxes. These are calculated based on the property size and location, which are not included in the home loan. You have to pay the professionals like lawyers and other officials along the way for the service they offer in verifying and approving the important documents needed for the registration of the property.
9. Property Insurance
Once the registration is over, it is time to insure your new house. There are many options when choosing home insurance policies in India that offer different degrees of coverage for you to choose and safeguard your investment and property.
Conclusion
A guide like this with steps to buy first home help home buyers to be aware of the procedures that await in the home buying process. One must select a home that matches the budget and requirements. Researching the local real estate market is one of the important steps for first-time buyers to get to know, compare property prices and rental rates and find a reliable builder. Listing out your needs as a checklist and carrying it along while buying a house will guide and ensure that you neither forget any of the elements nor get overwhelmed and buy beyond your financial capacity. Applying for a home loan comes in handy with tax benefits for first-time home buyers in India. While taking a home loan, make sure that you have enough room to cover the miscellaneous expenditure involved in the home-buying process, as the property price tag usually excludes registration fee, stamp duty, and other charges you pay for the real estate agents, brokers, and other professionals. Last but not least, remember, owning a house and protecting your investment is not over until you insure your property!