Jun 29, 2014: Buying a piece of property is cause of celebration as well as needs intense introspection. Every person dreams to have his own place to live in. We have this psyche of measuring others on the parameters of how grand or how small the home is, way of living, where he lives… etc. Therefore real estate plays an important role in deciding the societal status of a person. For investors also realty sector is a lucrative and time tested destination, an asset that almost always appreciates except in times when economy is under high stress.

With an increase in disposable income, there is an upward trend in the home buyers, most of which are taking the risk for the first time. Buying a property is definitely a risk considering the stakes involved, including full collapse and fatal death due to bad building practice. For an average person this is definitely among the biggest purchases they will ever make in their lives. Thus, instead of making an impulse buy you should first address concerns before crossing the line. Factors to account for while taking the plunge:

Who is this builder, agent, website or person trying to suggest a property?

Find full background even if you know each other for years and proceed if he/she is trustworthy, and not a commision agent in disguise of well-wisher. Even well-known and highly exposed brands and listing portals have back-channel deals with promoters. They do not hesitate to hypnotize new buyers and push them into darkness if they get handsome cuts from real sellers.

How much you are ready to spend?

The first thing that you should be considering while buying a property is your budget and what all options you have in that limited amount of money that you can spend. You need to set the upper limit of the affordability as going overboard with your budget can not only run your subsequent life haywire but also make the ownership a matter of stress more than a cause for celebration. A mistake that most home buyers do is discounting the costs you will have to bear after moving in the house. Such expenses often include furnishing, painting, interior designing, which can easily run into several lakhs of rupees. If you fail to include these expenses into your acquisition price, a danger of grave financial instability lurks over your future.

Where is your dream home located?

Well of course, buying a new home has to do a lot with where it is located. The locality also has a lot of affect on other parameters like the price, the size and the layout of the property. The factors that you should consider while zeroing on the locality can range from anything like distance from your office to community preferences. If you have a certain inclination towards a particular community then it is better to buy a home in an area which is majorly infested by that community. Other factors to consider a location are:

• Do you like the peaceful serene of a village or the teeming buzz of a city?
• Would you prefer secure surroundings of a gated society or the freedom of an independent plot?
• Does your budget allow for a small home in the most posh locality of the city or you are better off buying a lavish property in the outskirts?

Is there any scope to expand?

Most first time buyers in India fail to realize that with time they might need to expand their property to accommodate new family members. This issue is more India specific since the country has a culture of joint family prevalent not found elsewhere in the world. Therefore scalability is one parameter on basis of which you should measure the viability of your first buy. Prefer a property where you have the freedom and option to add multiple floors as and when such an expansion is required.

How are you going to finance your purchase?

The majority of first time home buyers in India finance their purchase with the help of a home loan. There are a number of financing companies, private and public banks who provide loans at subsidized rates for home finance. Such a home loan can also prove to be quite beneficial while filing your income-tax returns by providing you some relief in the form of rebate. However customer-centric a financier may sound, the reality is that all of them have a profit maximization objective. Therefore you should be able to understand the fine print of the loan document. Do not shy to seek the help of a professional, if required.