8 Tips for Acing Your First Property Investment

Buying your first property could be a rather exciting but nerve-racking exercise, particularly if you’ve not been exposed to real estate investments earlier. Here are a number of tips for first time property buyers to ace the deal -

Plan your finance

One of the key elements involved in acing your first property investment is planning your finances and resources. This includes checking your CIBIL score (on which your creditworthiness will be based), arranging for the down payment, getting a realistic estimate of current and future earnings vis-à-vis expenses (both regular and major expenses over the loan period).

Most of this will require some research but in case you wish to consult an expert, many financial advisors help you plan your finances before you go in for a property investment. Loan shopping is another major step to be taken. This means understanding the rate of interest (fixed or floating), the processing fees and other costs, the pre-payment fee, etc.

Assess your housing needs

 This is an important exercise that every prospective home buyer needs to take up. It is also, unfortunately, one of the much neglected aspects of home buying, particularly among first time home buyers. As a young couple, for example, you may consider a 1BHK flat in Mumbai quite sufficient. This may be true for a while but this very flat will become quite cramped if you look forward to starting a family and getting a pet. Assessing current and future needs will give you a realistic picture of what to expect.

Check the builder’s credibility

Checking the credibility of the builder is a very important precursor to buying a property. This becomes all the more important for first time property buyers who tend to get influenced by glossy advertisements and word-of-mouth recommendations. It is important to check the past track record of builders and developers with special emphasis on the quality of construction, the on-time delivery record, and even the financials.

Researching the property

Once you start researching housing projects in Mumbai you will come up with a plethora of options. Zeroing in on the location is of course of prime importance. You will need to strike a balance between affordability, convenience, and commute. When you have decided on a particular property start by taking a look at the various permits and legal clearances. Once this is done catch up on the specifics such as carpet area, the plinth area, the amenities in the property, etc. It is important to check if these fit your needs and budget.

Home buying is an investment

One of the most important things to remember before you invest in your first property is the fact that you are making an investment. This means that you should expect returns on investment (ROI). This ROI could be in the form of the value appreciation of the property, the rent you may expect to receive (if you rent it out), or the savings on rent (if you plan to occupy the property). “Will this property be a good investment?” Only if the answer to this question is in the affirmative one should you go ahead and buy.
Location: Mumbai, Maharashtra, India

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