Home Loan Down Payment Things to know Before!
Purchasing a house is one of the biggest investments in an average person’s life. In most cases of a property purchase, home loans become an indelible part of the process. Therefore it is crucial that a prospective buyer has all the information pertaining to the property to avoid suffering from any financial regress in the future.
Purchasing a house is a journey of a buyer from dreaming to owning a property. Along the waym there is a marginal (and in many cases considerable) correction in that dream. To explain what is important to know before a purchase, we start with the dream.
The Dream of Owning a House
All prospective buyers have a vision in their minds about the kind of property that they intend to purchase. This vision involves corrections. But once someone is prepared to purchase a particular type of property, he/she would extend the search to ensure that the end product comes as close to the vision as possible.
The Indian buyers have a tendency to stretch their budget if they are offered something better at slightly higher prices. It has been witnessed if there is a difference of less than 200 square feet in the area of a 2BHK and a 3BHK house in Chennai, most buyers opt for the 3 BHK home. Similarly, if there are numerous options available, a prospective buyer chooses the one property that meets his/her ‘wants’ the most. These wants could be the orientation of the house, its neighbourhood, vicinity to certain places and even alignment in accordance with “Vaastu Shastra”.
The Pin Points to Avoid the Prick
A buyer buys a home based on needs and extends the purchasing power via home loans to meet his/her wants. Many times, such an opportunity calls for expedited sales and that is where one can trip financially. The following pointers should be kept in mind before one closes the sale and makes a down payment on a house:
- In case the property has been purchased for investment purposes, one should always factor in the borrowing costs. The borrowing costs can reduce the profit margins and in case of slowdown in growth, chances are that a seller might suffer losses when present value of transaction is assessed.
- Property prices-like gold prices- are fickle. Even though they invariably increase in the long run, they can become stagnant and even dip over small periods. Many people have realized it the hard way in the past couple of years. Always know the local property trends before investing.
- If a buyer intends to move in immediately, it is vital to ensure that all utility bills and taxes of the purchased accommodation are paid in full. The utility bills include gas bills, electricity charges, any fixed line phone or internet charges along with any maintenance costs. It is advisable to verify the last paid bill before taking possession. Any liability on the premises can add to the financial woes of the new owner.
- Even though it is not comparable with cost of owning a house, Home Owners Association fees along with maintenance charges can add to the cost of owning a house. Whether one is looking for a house for sale in Hyderabad or Mumbai or Bangalore; it is advisable to bear in mind the additional maintenance costs.
Property purchase is a high end financial transaction. It is mandatory that a buyer be careful and avoid all financial traps by paying close attention to the possible transgressions on the new home.
Image credit: https://housing.com/in/home-loans/
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