Buying Apartments for sale in Chennai for the first time is momentous. It’s a huge step that changes your life in significant ways. But aside from the joy, owning a home of your own involves a huge number of processes that begin with an application for many people. For first-timers, it can seem daunting. A smart investment can potentially change your life by generating healthy returns, but a foul investment could hamper the longer-term potential of your property. While many consider investing in real estate a confusing affair, there are precautions you can take to help you start on the right foot. Listed below are some common real estate investing mistakes you should avoid so that you can make smart investment decisions:
Not evaluating your finances and credit score
Many people often rush into their investments without fully evaluating their finances. While investing in a property, you tend to overlook the additional costs of painting, maintaining, furnishing and monthly living expenditure. Apart from this, you also have property tax, home insurance and duties payable while buying a home. Making a list of all these expenses will help you make a better decision on whether you can afford a particular property or not and save you from potential debt.
Another important financial aspect is the home loan and your CIBIL score plays a huge role in ensuring your home loan does not get rejected. A CIBIL or credit score reflects the entire history of all past loans and MasterCard bills. A score of 750 and above shows that you make payments on time and increases your credibility and ability to get a loan. Many people believe that taking up a home loan solves their financial problems. However, you must clear out your credit history before you think of approaching the bank.
Not keeping the down payment ready
When buying a home on loan, you will need to pay a down payment from your own sources which may range around 10% to 25% of the value of the property. So, if you’re buying a Apartments for sale in Chennai valued at Rs 50 lakh, the deposit that must be arranged should be between Rs 5 lakh and Rs 12.5 lakh. Plus, there are several other non-loan expenses that have to be factored in depending, like registration, stamp tax and title deed charges, GST, brokerage, interior decoration, electrification, water system, so on and so forth.
If you don’t keep the deposit and other funds ready, you would possibly find yourself digging into your emergency fund or retirement pension or be forced to require a loan from friends and relatives.
The best practice is to form an in-depth budget months before taking the plunge factoring altogether the expenses without breaching your budget. You’ll be well-advised to invest in appropriate instruments to raise the fund promptly.
Not Considering Added and Hidden Costs of Apartments for sale in Chennai
Buying Flats for sale in Chennai is not as simple as it looks. There are numerous things that you simply need to consider. It is not just an easy act of moving from rent payments to paying the mortgage. There is the closing cost, insurance or homeowners, property taxes and the homeowner’s association fee. Most of the house buyers have all the most important costs in mind, but they fail to contemplate hidden costs like the maintenance cost. It is possible that when the added and hidden costs are included, the house becomes over budget. That is why it’s important never to forget the hidden costs.
Compromising other important financial goals
While buying apartments for sale in OMR is likely to be one among the most important financial goals for you, it doesn’t mean it’s the sole goal that you simply got to meet. Many people buy a home and divert a major chunk of their income to repay their home loan EMIs. But later they struggle to rearrange funds for other crucial things like child’s education and retirement due to which some of them either get depressed or end up borrowing money later. Worse, some are forced to sell their home at a distressed price to arrange for the money.
While making your purchase of Apartments for sale in Chennai in KG builders makes sure that you simply don’t make any of the above mistakes. If you manage to avoid these errors, then you’ll easily buy the most effective house within your budget.Tags: Apartments for sale in Chennai apartments for sale in omr Flats for sale in Chennai