First-time home buyers almost always have a hesitant, shaky start. If you haven’t done this before, it could seem like a lot of rookie mistakes are just waiting to be made. One thing to remember is that home buying is a process that needs to necessarily start with careful thought, efficient planning and a well-structured approach. Particularly, one crucial question needs to be answered before any sort of planning or decision-making.
What is the purpose of the purchase?
The first step in the home-buying process, and arguably the most important decision to make before buying a new home, is to identify if the property is meant to be an investment or for self-use. This decision has a major implication on the approach you will need to take. Buying a house as an investment will require careful planning to ensure that it is fruitful. On the other hand, buying a house for occupation will need a more aesthetic and functional dimension in the assessment. Simple as this may sound, this decision will direct your further plan of action.
If you’re a home buyer:
If you are a home buyer, there are a lot of things to consider in terms of living needs, spatial needs, readiness for occupation, amenities and the like. Many builders try to push off homes with a plan to build as you go, and offer value enhancing propositions that will be given with time. They may offer the house, but delay amenities until after the entire residential structure is done. Buyers will have to move in but will have to wait for their amenities. When the amenities are built and ready, the newer blocks that come have wrested the premium valuation, since most buyers will prefer to move into a newly built apartment rather than an old one. As a buyer, your priority is to look for fully completed or near-completed houses that can be occupied at the earliest and not delayed unnecessarily.
If you’re an investor: If you’re approaching the purchase from an investor’s perspective, the factors that need to be considered change. For instance, when gated communities are being built, investing at an early stage can cost you less than if you invest in the blocks built last. When it comes to resale, you’ll need to find the right time, i.e. when the builder has finished selling his stock. Otherwise, you’ll have to necessarily sell at the builder’s rate which may not bring you as much profit. Similarly, if the project you’re seeking to invest in derives value from expected infrastructural development, you’re better off waiting for the development to be completed before selling it. This will ensure that you get the best price possible.
The points discussed above are just indicators of how your approach should change based on that crucial first decision. Without a sense of purpose to the purchase, you are very likely to be misled by insignificant details. Irrespective of whether you want to reside in your new home or make money out of it, you don’t want to regret the choice you make.
