New Delhi (India), January 13: In the 90s investors saw real estate as a long-term investment vehicle for higher ROI. They buy a plot, hold it for 10 years and sell it for multifold returns, real estate was the primary investment option for many of those days but the investment behaviour of the Millennials and gen Z has been towards lightweight investment vehicles like Mutual funds, Stocks and FD. This lightweight model gives them easy entry and exit.
This easy option gives a different perspective on real estate among the millennials; they buy real estate only for self-use not as an investment product anymore specifically apartments which give only 1-2% returns whereas commercial properties can deliver up to 8% returns.
Many first-time buyers are coming to the market with the intention to buy a good property for self-use. Here we have jotted down a few tips for first-time real estate buyers
Do market research: Take the time to research different localities and areas to find the one that best fits your needs and budget. Consider factors such as proximity to schools, public transportation, and shopping centres. If you are looking for a property in metro cities there will always be emerging localities with developed neighbourhoods where you can buy one sqft at a price lesser than the developed localities.
In Chennai, the demand for apartments in Madambakkam and for flats in Thoraipakkam. has been growing exponentially for the last few months which is located near developed and popular localities like Medavakkam and Tambaram.
- Keep your finances right: Before you start looking for a home, make sure you have a good understanding of your credit score and take steps to improve it if necessary. It’s also a good idea to get pre-approved for a mortgage so you have a clear idea of how much home you can afford.
- Make a wish list: Before you start looking at homes, make a list of the features you want and need in a home. This will help you stay focused and avoid wasting time looking at homes that don’t meet your needs.
- Get a home inspection: Before you buy a home, make sure you get a thorough home inspection to identify any potential issues. You can get help from professionals for an inspection.
- Negotiate: When making an offer on a home, be prepared to negotiate on price and other terms. A good real estate agent can help you navigate the negotiation process.
- Save for a down payment: Banks can only offer you up to 80% of the property value based on your CIBIL score. You have to make the 20% from your pocket so start saving for the down payment.
- Don’t rush into things: Buying a home is a big decision, so take your time and don’t rush into anything. Make sure you are comfortable with the home and the terms of the sale before moving forward.
- Understand the ongoing costs: Keep in mind that owning a home also comes with ongoing expenses, such as property taxes, maintenance and repairs. Create a budget to ensure you can afford these costs.
Lastly, seek good professional help, property consultants and Civil lawyers can help you navigate the home-buying process and avoid any potential pitfalls.
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