The answer to this should be arrived at after considering the following variables:
- Do you have a steady source of income from your business or your job? Do you have a steady job for atleast the last 3 years? Is your current employer a steady profitable business or are you working with a startup or a company with a shaky future?
- Do you have a good record of paying your bills and past loans? In short do you have a good credit record?
- Do you have money saved for making a down payment?
- Do you have other expensive outstanding loan repayments and debts?
- Do you have the ability to pay a substantial amount in EMI every month plus other costs?
- If your answer was yes to the above questions then you are ready to buy an upscale property!
Actually these two are highly disparate questions. The big advantage with renting is that you will be free of most of the maintenance costs and responsibilities that come with owning a home. But by renting, you lose the chance to build equity, take advantage of tax benefits and insulate yourself from rent increases. Also you may not have the right to decorate as you like without permission and will always be at the mercy of the home owner when it comes to terminating the rental lease. As you can see, owning a home has many advantages. Everytime you make an EMI payment you are building equity and that becomes an investment. By owning a home you are also entitled to tax breaks that will help you in dealing with your new financial responsibilities such as – insurance, real estate taxes and maintenance which can be large and substantial. But when compared to the freedom, stability and the security of owning your own home, the decision to buy a home becomes a worthy decision.
The Bank or lending institution will consider your debt-to-income ration which is basically a comparison of your pre-taxable income with housing and non-housing expenses. Non housing expenses will include long term ongoing debts such as car or other legal debts such alimony or child support. The lender will also consider your ability to pay cash for down payment and closing costs, your Credit Score etc. which will all go towards determining the maximum loan amount that can be made available to you.
Apart from comparing the homes that you are in the process of shortlisting with your ideal minimum criteria and wish lists, you should also consider the following check points:
- Is there enough room for the present and the future as your family grows?
- Are there enough bedrooms and bathrooms?
- Is the home pleasant, airy and has ample natural light?
- Do the pre-installed mechanical and electronic systems and appliances work?
- Do you like the floor plan?
- Will your furniture fit in the space? Is there enough storage space for all your needs?
- Imagine the home in day and night, in good and bad weather. Will you feel happy and secure inside round the year?
- Are the property related legal documents clean and clear?
- Have you done due diligence on the property?
That really depends from person to person. Ideally you must visit as many homes as it takes to help you and your family feel satisfied to choose the one you finally settle upon. On an average, buyers in the market generally see an average of 15 homes before choosing one. Just be sure to clearly communicate with your real estate agent about your preferences, likes and dislikes so that precise homes matching your preferences can be shown to you thereby saving time and effort on both sides.
Once you have zoned in on a particular home and decided that this it, our real estate agent will help you in making an offer to the Developer / Seller which will include the following information:
- Complete Legal description of the property
- Amount of Earnest Money to be deposited
- Down Payment and financing details
- Proposed Moving-in Date
- Price you are offering
- Proposed Closing Date
- Duration of Time the offer is valid
- Details of the Deal
To calculate your initial offer, you can take guidance from your real estate agent but of course it is your own instinct that will finally decide what you think is a fair price for the home that you plan to own. To calculate the offer price, you must keep several factors in mind:
- The price that homes like yours typically sell for in that area
- The condition of the home
- How long the home has been on the market
- Financing terms
- Seller’s Situation
The following are our terms and conditions for commission or brokerage fees:
(a) Where we act on behalf of both the Buyer and the Seller, commission at the rate of 2 % shall be paid to us by each party.
(b) Where we act only for the buyer or the seller, commission @ 2% shall be paid by the party for whom the member acts.
Before we start showing you properties, our real estate agent will discuss our terms and conditions with you and only if you are comfortable with our terms shall we proceed with the showing of properties. The commission will have to be paid to us at the time of execution of the:
(a) Deed of Transfer or
(b) Agreement for sale or
(c) Completion of the transaction or
(d) Possession of the said property