1) Buy you first home for residential purpose rather than for pure investment : If you choose your first house for pure investment purpose and it turns out to be a bad investment , it won’t be easy to sell it in resale market and you might end up losing money and spending a few years getting back in position to reinvest. But if you invest in a house for residential purpose and it doesn’t turn out to be a good investment, you can still move into it and offset you EMI by the rent you save or rent it out and use the rental income to offset you EMI. So buying a house in locality with good demand for housing is most prudent investment for first timers. Additionally residential demand is least impacted while investor’s demand is most severely impacted in times of economic downturn. Always buy your first house in a place where you would like to live rather than just invest and get out after making some money.
2) Buy your house keeping in mind your future plans : Make sure that if you are buying a house to reside , it should meet your future requirements. Suppose, If you are single then keep in mind that probably you are going to get married and have kids in future and a home which is appropriate for you right now might not be adequate for your future requirements.
3) Clearly define your budget : Plan for few years in future before arriving at your budget. Keep in mind, buying a house is a long term investment and if not well planned it could make your life miserable for a long time. Delayed payments of installments might lead to penalties which would further escalate the costs. Always account for your future plans such as buying a car, taking a personal etc. before finalizing your budget and always leave some breathing space so that you are free to sell rather than forced to sell.
4) Start searching in advance : Always start looking for a house with more than a month timeframe. A lot of time would be spend finding houses, evaluating their locations and visiting them physically .To this add a few weeks for negotiation and bargaining. Last thing you want is for the real estate agent to know that you are urgently planning to buy, once he gets any hint of urgency forget any discounts or bargains. Always keep aside a few weeks to let the agent chase you trying to close the deal.
5) Stick to your budget : When you meet the real estate agent or the sales team of the developer, be prepared for a few mind games. The agent will always try to up-sell you by telling you that your budget is too low. Don’t fall for his trick and stick to your budget. Additionally agents usually start with presenting highly overpriced properties followed up with a mildly overpriced property, which suddenly appears to be a good bargain. Don’t fall for the trap and explore all your options before taking the final call.
6) Do your own Research : Don’t rely on agent or realty websites else you are going to get a bad deal. Agents are bullish on properties which are offering them best commissions and builders who are offering maximum price for advertisement get featured on the top in realty websites. So use realty websites for research but don’t trust their recommendations.
7) Choose a good location : Location is the most important factor when looking for a good investment. Real estate websites like houseincity.com, zillow.com can help you evaluate a location. Look for
Good connectivity : Good roads and public transport services like Metro train etc.
Amenities : Schools, Shopping malls etc.
Demand : Most people prefer living close to their offices, and properties located near such strategic locations are always a great investment. On the other hand localities with no job generating factors in proximity, often command poor rental prices and take longer to get inhabited.
Tip: You can use HouseinCity to find properties near Metro Stations, Shopping malls, Schools etc.
8)Seasonal impact : Always check the condition of the locality in rains and other seasonal variations. Rains often results in waterlogged roads (often waterlogged houses), water borne diseases and in short rainy season can make your life hell if your locality faces problems of water-logging.
9) Never underestimate the salesman in your agent : Simply remember your target is to get a good house at a good price and your agents target is to maximize his commission out of this transaction. Always hide your excitement even if you are getting a good deal for if your agent gets any hint of your excitement, forget any chances of bargaining. Be more alert if you are taking your family to visit a prospective home.