With growing income and independence, more and more youngsters are entering the real estate market and buying their first homes quite early in their careers. Here is a peek into what factors they should keep in mind before taking the plunge-
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When Naveen Arora, 27, an IT professional employed in a renowned company in Noida, decided to buy a home, surprisingly budget and finances were not his prime concern. There are several other issues that youngsters have to confront before they actually finalise their purchase.
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In today’s property market, buyers are bombarded with a number of property options ranging from affordable to luxury in a varied budget range. The market also offers multiple payment options as well which makes it all the more easy and tempting to go ahead with the purchase. However, young buyers entering the market for the first time should be cautious and keep some points in mind before investing.
Choosing the right property and location
As per the Magicbricks ‘Guide to buying a house’, one should buy property in an area which has adequate basic amenities such as power, water, sewerage, etc. Infrastructure in the area, connectivity, builder’s goodwill and price of the property are key components a buyer needs to take into consideration. It is better to conduct a field survey before identifying a suitable property meeting your budget and location preference. The location of the property should be based on whether it is for end-use or investment.
What to buy?
Depending on the chosen budget, one can decide the type of property. If you are an end-user, the size of your family, along with the budget can be a determining factor. Multi-storey projects and townships with all amenities in one project are what most end-users are looking at today.
“Youngsters looking at their first homes should ideally opt for a small property to initiate their investment portfolios. If you are looking for end-use, go for apartments and choose a plot in case you are looking for a long term investment,” suggests Yash Joshi, managing director, RMZ Corp.
As a per a survey conducted by Magicbricks on first time home buyers, majority of the respondents were looking for a 2BHK and 40 per cent had a budget of Rs 20-40 lakh.
Documents to check before buying
Documentation is very important while buying a property. Today, there are several schemes in the market that attract buyers, particularly the first time buyers, as these require low initial investment. One should keep a check on the following:
-Proper conveyance of title in favour of the builder
-Licence/development right/approval of the builder
- Clear and marketable title of the project
-Execution of proper allotment letter/sale agreements on your payments
-Project approval from reputed financial companies which will help in getting loans
Joshi adds, “Check the proven track record of the developer, check for proper documentation and do engage a lawyer who would tally records and the needful on the legality of the property you might choose to invest in.”
More and more youngsters are now opting to buy their own house as they would rather pay an EMI than pay a huge chunk of their salaries as rent. While experts in the industry have been saying that it is a good time to buy property, keeping the above pointers in mind would hold young buyers in good stead!