Buying a home is a major milestone. India Times reports that there has been a 92% rise in housing sales across eight major Indian cities in 2021. This was helped by low interest rates and the economy starting to recover from the pandemic.
There are many reasons why people buy homes other than to live in. For one, it can be a great way to diversify your portfolio. As a previous post on ‘Mutual Fund Portfolios’ highlighted, a well-distributed portfolio creates a balanced investment index. This helps protect you from market fluctuations.
Buying a home, whether it’s for personal or commercial use, is considered an investment. So, if you are planning on purchasing a property, here are some helpful tips you can use:
Hire a real estate agent
Real estate agents are professionals who understand the value of a property. A write-up on How Stuff Works explains that hiring an agent is very beneficial, especially for first-time homebuyers. However, you do have to check their credentials and credibility first. Real estate agents will be able to tell you how much you should be paying for a house and whether the value will continue to rise based on its location and the amenities around the community. They will also be able to handle all the required paperwork, which will save you from complications and hassle down the line. Enlisting the services of a real estate agent might cost you a little more, but they will be able to guide you through the whole process which makes them very useful indeed.
Don’t be afraid to negotiate
What some people don’t realize when they are house hunting is that it is still possible to ask for a lower price. AskMoney advises homebuyers to negotiate for the properties they are interested in, as it could get you a good deal – something they may not be offering upfront. You can ask the seller to shoulder the costs of any inspections needed before your purchase it. Make sure to come to an agreement and put it into writing before proceeding with the sale to make sure both parties are on the same page.
When buying a property, always try to negotiate a deal that will benefit both you and the seller, so you aren’t lowballing them but you’re also getting the property at a reasonable price. However, it is important to remember that if the property you are looking at is highly sought after, it is possible that by putting in a lower offer, it could be rejected. If this happens, there’s not much to do aside from making a new offer or finding a different property that can fit your budget.
Find the right loan
If you want to buy a house, but don’t have the full amount in cash, taking out a low-interest loan could be a big help. Forbes explains that there are many factors that should go into deciding where to borrow from and what plan to choose, rates being the major deciding factor. There are fixed and floating ones that you can choose from as they both have their own pros and cons depending on your situation. You can also opt for a tenured loan so payments will be more spaced out. Just remember to consider your financial standing and credit score before applying for a loan as this can also affect the rates you will be given. Don’t be afraid to ask for quotes from multiple institutions before deciding which loan is best for you.
Buying a house during a pandemic may seem a bit daunting, but it can be an investment that will last for a lifetime. Consider these tips before diving into your real estate venture for a smoother and easier process.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.