In Brief
It is okay to make mistakes but not after knowing. The first time it's understandable because buying a home for the first time can be confusing.
Here are some mistakes home buyers make while buying a home
1) Not Setting Budget
Setting up your budget will help you to save money and time.
- Buying a home is a huge process, especially for first-time home buyers.
- Setting up your budget will save you from unnecessary expenses.
- Make a chart of all your expenses, and then check what is most needed.
- Since you are a first-time home buyer, keep in mind that not every expensive thing provides ALL AMENITIES and quality.
- Search for a place where your budget and necessity fit.
- Stick to your budget you will find a perfect home according to your budget eventually.
- Make sure that your spending goal can take care of before heading installment.
2) Not Thinking About Moving And Other Costs
First-time homes mostly make this mistake~
Not Thinking About Moving And Other Costs
- They only focus on buying a home which creates problems after buying.
Think about other costs and expenses like
- If you have taken your home far from where you are staying currently, then, of course, you will need a truck to carry all your luggage, heavy furnishing(movable), and household items. Think about all traveling costs and add them to your budget list. But, if you have taken a home nearby, still you need some manpower to carry your luggage, heavy furnishing(movable), household items, etc. And that will cost too.
- Another Point is you should always think about your needs after buying a home. Imagine you finally purchased a home but what if you have to do some immediate renovations, Home lighting, and a little cleaning?
- Speaking of cleaning, you can do that by yourself but what about other costs? of course you need money for that.
- Here are some expenses you have to consider~ like taxes, interior design charges, maintenance charges, registration fees, etc. These expenses are without a loan amount if you have taken one, then add it to your expenses list.
3) Not Comparing Or Researching Homes
I would like to share a piece of advice, just make a simple list of your liking in homes and get recommendations from your family members, then research a home and check if that home matches your liking list. It will make it easy to find the perfect home for you.
- Do not hurry, take your time and research well. Buying a home is a long-term investment so think before selecting a home.
- In your list add your location preference and your budget.
- Now you can research homes while sitting in your home, and yes, you can check projects online by real estate companies. This way, you can search for more projects than you could have done physically.
- The research will help find and understand projects that are available in the market.
- Research may help you find a project far from your preferred location but will offer you a rich lifestyle while saving money.
- Comparing and researching too much will make you greedy and confused. Stick to your budget and your liking in homes. Once you find a home that is perfect for you and has all the facilities according to your needs, start the deal.
4) Not Comparing Home Loans
We all know how uncomplicated it has become to buy a home with the help of a loan, but finding a bank with low interest can be difficult. It can be easy with little help from research and the internet. Almost everyone knows how to use the internet for their benefit. This little research can surely help you find your dream home. Many banks provide low costs to female borrowers.
Here are some banks with their interest rates
HDFC Bank with 8.40% p.a. - 21.00% p.a.
Yes, Banks with 10.99% p.a. onwards - 16.99% p.a.
Kotak Mahindra Bank with 10.25% and above.
- If You are a first-time home buyer looking for a home loan, try to find a bank with the lowest interest rates.
5) Ignoring Tax Benefits
Not everyone is aware of taxes, especially the benefits of taxes.
- In India, there are Special tax benefits for first-time home buyers under Section 80EE and Section 80EEA, and buyers should take advantage of these provisions.
- In home loans, tax benefits are available for both men and women. But if a husband and wife want a home loan, they can get the benefit of the maximum deduction. The husband and wife joint home loan maximum deduction is Rs.1.5 lakh on principal under section 80C and Rs.2 lakh on interest under section 24 components of EMI.
Here are some informative blogs for first-time home buyers~