5 Points to Consider Before Buying Your Dream Home

 5 points to consider before buying your dream home
photo by fotographix.ca

Have you been waiting for the right time to buy a house? If yes, then this is perhaps the right time if you can afford to buy and get a better deal as real estate prices have come down considerably from their all time high in 2006.

Though buying a house may prove to be a prudent decision during this time of slow down and economic recession, you will still need to be an extra careful while closing the deal; it may not turn out to be as prospective and advantageous as you might have expected.

Here are few points or factors one may consider before buying one’s dream home especially in the light of the current scenario:

Enquire about the builder

The first and the foremost thing one must do is, make enquiries about the builder from whom you shall be purchasing the property. Check whether he has any projects pending if any, and if yes, try to find out the reasons for the same. Inquire about his reputation in the market and also inspect one of his already built projects. In this way you will come to know, what you can expect from him for your house. These days due to economic slowdown, it is getting difficult for the builders to get adequate finance from banks, when they are facing a serious liquidity crunch. So there is a possibility you may not get your house at the promised date. Hence do not hesitate asking and obtaining in writing from your builder the date when he will be giving you the possession of your house.

Confirm your loan amount

If you are opting for a home loan, do inquire with your bank about your sanctioned loan amount before giving the booking amount to the builder. The scenario has changed now, as most of the banks have reduced the percentage amount of finance from 90 percent to 70-75 percent of the total value of the property to be acquired or purchased. In that case you will have to arrange for more cash, which if you are not able to do, you most likely will have to forgo your booking amount given to the builder.

Review your financial status

During this recession time, all of us run the risk of losing our jobs. What if you lose your job after closing the deal? You will be in a financial turmoil if you do not have the money to pay your Equated Monthly Installments (EMIs). So take the decision considering your job security and present cash reserves. Also during this period of recession it will not be wise to exhaust all your finances for buying a house. Make sure the purchase you are making is affordable to you, also ensure you don’t take further loans or borrow money to repay your first loan.

Risk cover

Go for the recent schemes announced by the insurance companies these days that incase if you loose your job, the insurance company will pay your home loan EMIs for 3 months. This will give you the flexibility to search for a new job or arrange for the finances.

Try to get the best deal

Due to lack of demand and liquidity crunch in the real estate market these days builders have started offering discounts and other incentives, so it’s the right time to bargain, and get the best deal for buying your house. Do not hesitate to press the property dealer or the builder to reduce the price in case he resists. If he is not agreeable to the reduction in price insist on a decorating allowance or free car parking.

So don’t take any decision in a hurry. Do the analysis carefully and keep in mind the above factors while closing the deal of your dream home this year. All the best!

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Author: Austin Comments: 2 comments Date: 18 May 2009
Categories: Real Estate Tags: , , ,

There are 2 comments. Leave a comment!

  • ¬ 5 Points to Consider Before Buying Your Dream Home | BuyWithoutYourBank.com
    #2018 May 18th, 2009 at 2:43 am

    [...] the original: 5 Points to Consider Before Buying Your Dream Home Share with [...]

  • ¬ Jonathan Paul
    #4685 October 16th, 2009 at 3:45 am

    While buying a house it is vital to narrow your search to the location you prefer and the budget you have in mind. The search engine throws numbers of links that can guide you into choosing a right property. You can also contact the buyer immediately to collect details about the property of your choice. All the information is available on the internet and there is no intermediary involved. The transactions are done on a one to one basis and all negotiations and doubts can be clarified online. You can save on valuable time and money in an online deal. Since there are variety of properties available online there is 99% chances that you can acquire your dream property or a decent price for your property on the internet.

    Thank u
    :)
    Keep blogging

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