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How to identify the best home for yourself?

A right budget, clarity on location and one‘s financial muscle among other factors help to identify the best home for oneself

Tanuj Shori

Getting a perfect home is one of the dreams that nearly all of us desire at some point in life. But finding the one that perfectly synergizes with all our requirements and resources at disposal is a challenging endeavor. Not only does it require ploughing into one’s lifetime savings, but also countless iteration of property search and visits along with discussions and negotiations to identify the right property.

However, there are certain factors, which if carefully looked into cannot only simplify the overall process, but also expedite the exercise and help buyers identify their best home.

Budget

Deciding on an optimum budget size that is attuned with one’s social and economic identity is the fundamental step towards an effective home identification exercise. It helps in effectively utilizing and managing one’s financial resources. Likewise, it helps in filtering the right set of properties from an exhaustive list of available options and hence saves a lot of time.

However, the budget size should be carefully defined. Fixing a lower budget than one might afford will eventually result into selecting a poor quality home, causing dissatisfaction and inconvenience in the future. Since it’s a high involvement investment, it is difficult to revise the decision and hence compromising with quality will be the only available option. Likewise, fixing a budget that falls off the threshold limit of individual affordability will result into unwanted searches and waste of time. The beautiful landscaping, international quality designs and range of state of the art amenities might dazzle the buyer, but the high price ticket size will eventually won’t take things anywhere.

Moreover, looking at lavish homes in the beginning will set the expectation bar very high and hence pulling it down in the later stages will be tough.

Location

Location is the backbone of any effective property search. It serves two separate yet extremely crucial objectives. Firstly, every buyer has their set of requirements such as how much time will it take for them and their spouse to commute to work place, kids to visit schools, availability of malls and other social amenities such as banks and medical facilities in the nearby vicinity. It is advisable for buyers to do a rough calculation of these essential parameters and based on the same finalize key locations.

Similarly, one must keep in mind the significance of home purchase with respect to investment objectives and hence the anticipated return on investment (ROI) should never be discounted. It is always advisable to look into locations that are boastful of a robust social infrastructure in the form of top quality schools, colleges, restaurant and hospitals. Likewise, the locations connectivity to key commercial markets is also crucial as it will result in greater ROI through higher demand.

Time to move in

Once budget and location has been finalized, the next step involves estimating the desired time to move in. Different properties are at various levels of completion - pre launch, under construction and ready to move in. Hence before zeroing down project, it is advisable to understand the exact status of the project and whether it will be completed before the buyer’s desired time to move in.

Configuration & Amenities

According to the requirements, the configuration should be taken care of. Based on the need of the self and the family, the right unit type or the number of bedrooms required should be figured out. Likewise, the buyer should analyze the exact size of the home required. While choosing the size, it is often advisable to go by carpet area that defines the exact area within the walls of a house or the area on which a carpet could lay into. Other specifications such as super built up area and floor area can give misleading results.

Similarly, buyers should understand the significance of the available range of amenities. Increasingly apartments are coming up with a wide range of amenities such as swimming pools, gymnasium, Yoga center, food joint, etc. The presence of a good range of amenities can fulfill the fitness and entertainment quotient of the family. An illustrative list of amenities will also save from joining clubs, which are increasingly becoming very expensive these days.

Developers Credibility

It is essential to verify the credibility of the developers in the form of their financial strength, experience, ability to handle multiple projects and past delivery track record. Due to surge in economic uncertainties in the recent past, the emphasis has been more towards purchasing home from top quality builders. It can ensure safe and better ROI besides adherence to international quality standards.

Financial Angle

Successfully adhering to the above mentioned steps can result into identifying the right home, that will fall within the budget and simultaneously fulfill all the requirements of the buyer. Nevertheless one key area remains, which requires significant attention - selection of the right financing instruments. Presently, roughly 80% of the property price could be funded by home loans, thus providing a great alternative to finance one’s quest for dream home. Hence, it should be carefully chosen to minimize the cost and the risk involved.

Before opting for a loan, the buyers should check their credit score and in case of any previous default, it should be properly fixed to ensure hassle free borrowing. Likewise, the buyer has to showcase a stable employment track record and a sound plan to pay the monthly installments to enhance their credit worthiness.

Also, buyers need to decide on the type of interest, which could either be fixed or floating. The rate of interest is the key factor in calculating the EMI and hence the financial planning of the buyer is necessary. In 90% of the cases, the latter is preferred as it is perceived to be cheaper. However, opting for the former will ensure a fixed EMI, there by resulting into better budgeting and planning.

With increased financing option, rise in personal income, availability of multiple home options and a general positivity in the economic atmosphere, identifying a perfect home is becoming relatively easier.

Nevertheless, there are certain guidelines that should be followed well to make the overall endeavor simpler and experience joyous- after all a perfect home requires perfect attention.

The author is the Co-founder and CEO, Square Yards
First Published on Jul 28, 2015 10:36 am
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