Wasn’t finding the right property already a task enough, that now we homebuyers have to be entrusted with the responsibility of making sure the property prices fit in our decided budget too?
Is this not exactly what you are thinking? We are sure that some of you are even sighing with exasperation right now!
You would like to know why we are taking this so lightly, right? You will be relieved to know that we do have tips and tricks that, if followed, will get you to purchase the perfect property that too in the budget that you have decided for yourself. The tips that we will share with you have already been tried and tested, and are proven to work well and with efficiency if followed consistently and rigorously.
The real estate market in India is constantly flooded with a variety of plots, villas, lands, apartments, and commercial properties. In the post-pandemic era, both the demand and supply are going hand in hand in the housing market. You can say that the impact of COVID 19 on the real estate market has not only made buyers realize the value of owning their property but has also made sellers ensure that they are getting the money that they have worked so hard for.
Finding the right property is a tricky enough job in itself. Even if you get lucky and after days and months of house hunting, find a property that you have always dreamt of, your struggle is not yet over. Once you do have an idea of the property you would like to invest in, your next step is to assess the property in terms of whether or not it fits your budget. Now most of the time, if the property does not fit our budget; we lose heart and decide to let go. Let us tell you right now that this is not the quality of a responsible and successful buyer.
By now, we all know that finding a property that fits your budget is a challenge that most buyers in the real estate industry face. So what are the next steps? How can you make sure your dream property fits your budget? Is the only option to let go and move on to other property options? Is it wise to drop the idea of buying property altogether and start the process once you have a higher budget allocated to real estate? How about you use your emergency fund and put all your finances into buying the right property if you ever find one?
All of these are questions that come into the minds of homebuyers when they find the right property but soon realize that it does not fit their decided budget. Clicbrics believes that it is not right or even fair to start the home buying process with so much stress and tension. How will you enjoy the journey if you are so worried about these factors?
It is critical to plan ahead of time and ensure that you do have a plan in mind if your chosen property prices are exceeding your fixed budget. While a backup plan is a must, this article is about providing you with some steps that you can take to find the ideal house within your budget.
What Can You Do To Find The Right Property Within Your Budget?
Get To Know Your Market
As we have mentioned in all our articles before, staying updated with the current trends in the market is the key. Take into account current trends, prices, development, and interest rates. While it is a wise decision to consult a real estate broker when needed, make sure you do not trust anyone easily and take out time to do your research. Sufficient research will also help you compare prices and figure out which one fits your budget. Quality comparison can be done by weighing out the pros and cons of both properties and analyzing whether the pros or cons outweigh the other.
Also, stay alert about any new rules and regulations that may be updated by the government. When you buy a property, you would also have to take care of a lot of legal documents and other formalities. For instance, properties today need to be registered under RERA. This is especially important for buyers since this scheme primarily protects their rights and makes sure transparency is provided at each step.
Calculate Your Budget
How much money can you afford to invest in the right property? Do not start house hunting without an approximate budget in mind. Evaluate your finances and savings, and figure out how much you are willing to spend for the sake of your dream house. Be sure to include various finances like tax, registration, emergency fund, interior styling, furniture, etc. Your goal should be to choose a property that will give you a high value for money but will also at the same time tick all your needs and requirements on your checklist.
Once you have decided on the total budget, it is time to start looking for properties that fit under that limit. We know that it may be tempting to want to exceed your budget once you find a great property. However, trust us when we say that this may lead to financial burdens in the future.
If you are confused and not sure how much money you should be spending on a property, it is wise to consult a financial advisor and get their take on your situation.
Decide The Location
Ask yourself - what is an ideal location for you? Is it one that is connected to the main city or is it one that has easy access to public transport? Would you prefer a neighbourhood that is peaceful and calm or one that gives you access to the daily hustle and bustle of life? Is your preference for a locality more traditional or more modern? If you still do not have a definite answer to all these questions, then take your time before you move on to house hunting. Do not be of the mindset that once you start hunting, the right location will naturally come to you. Having no location in mind will confuse you even further, ultimately postponing your house buying process.
After all, the location that you choose will decide the worth of your investment.
Size and Type of Property
The price of the property will differ in size and type. Once you have decided on the location, your work does not end there. The prices of your property will greatly vary on its age, size, and type. Another important decision that you would have to make is whether you want to invest in an ongoing or a ready-to-move project. On one hand, ongoing projects are priced much less as compared to completed ones. On the other hand, ready-to-move projects are a sure-shot way to earn extra income every month since you can rent them out as soon as you buy the property.
Once you have decided the size and type of property, you can start shortlisting properties according to your requirements. Also, pay close attention to the amenities they offer and whether it is flats, apartments, or villas that are the most suitable for your needs.
Know What Your Needs are
Are you clear with the actual purpose you want to purchase a property? While every homebuyer will have different intentions for buying a property, you need to be sure of what your intentions are. Are you looking for a dream property, one that you can call your dream home? Or are you looking for a property to make a profitable investment for the future? You are unlikely to find the right property if you are not sure in your mind of the purpose of purchasing.
Knowing your needs also entails some aspirations or personal requirements that you may have. Would you prefer more space, a play area, or extra security? You need to plan all these ahead, and then decide your budget for the same. If you dive into blindly buying a property, you will end up spending unnecessary money on a piece of land that may not even suit your needs.
Clear All Your Debts
Buying a property and ensuring all your existing debts have been cleared are closely linked. When you apply for a home loan, banks will look at your credit history and check your creditworthiness before granting you a loan. You may not be eligible for a loan if you have a lot of existing debts that you have not yet been able to pay back for whatever reasons.
If you know how to wisely manage your expenses, it will reflect in your credit history and the banks will happily grant you the amount you need for buying your dream home. Also, ensure that you maintain a positive cash flow in your bank account so that paying EMIs is not too difficult in the future.
Lastly, remember that the most crucial aspect of succeeding in the real estate market is by staying updated with the latest trends. The bottom line is that you cannot flourish in this industry if you do not acquire the skill of negotiating and deeply understanding how other players function. Real estate is all about effective communication and transactions with one another and only a smart real estate investor can find their dream property that too within their decided budget.
Remember that while you should be open to compromise and willing to be flexible in tweaking some of your requirements, it is not you who is required to adjust when it comes to finances. We understand that you have set a budget for a reason, and those reasons should be respected no matter what. As they say, good things come to those who wait. What we mean to say is that even if you have to wait for a little more time than you expected to find the right property, it is worth the wait if you do not end up spending more money than need be.
Investing in the right property at the right moment is the ultimate hack for both buyers and sellers operating in the real estate market.
So, what are you waiting for? Now that you have a guide on a variety of tips and tricks, all that there is left to do is take the plunge, contact the right real estate provider, and start your journey of finding the property you have always only dreamed of!
Also read: 8 Best Cities In India for Real Estate Investment in 2022