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Five Common Mistakes To Avoid When Choosing A Property

  • Highlights

  • Don’t let real estate brochures override reality

  • Go through the fine print to avoid miscalculating the total cost

  • Learn about down payment and choose the right lender

  • Pick an affordable home loan with value-added features

Buying real estate not only involves substantial sums of money, but also requires caution. Since your property choices are endless, you may often find yourself confused. The process of choosing, however, can become easy if you understand your needs and price range, and then find an affordable way to finance your purchase.
Here are five common mistakes that you should avoid when you go property hunting.

Being swept away by glossy brochures:

Buying real estate is exciting, but you can be led astray if you are easily influenced by attractive brochures proclaiming prime location, fantastic views, and amenities. While it is good to consider these benefits, you must also take into account the property’s actual physical aspects. Do not rush into buying a property.

Missing the fine print:

Bear in mind that builders, owners, and brokers lure you by highlighting a few prominent features of a property. Sometimes an important amenity may not exist except on paper and you could end up being unaware of it. You may also be ignorant of the implications of certain clauses in the home purchase agreement. So, it is crucial to read every minute detail of the terms of the contract and clear all doubts before authorising a sale.

Miscalculating the full cost of the property:

The monetary transactions involved in buying a property may be high, and it is easy to miss out on costs such as stamp paper duty, registration charge, etc. Also, once you are a property owner, you will have expenses over and above your monthly payments such as monthly maintenance or parking charges. This can either make you stretch beyond your means. So be aware of all additional charges to arrive at the total cost of any property.

Additional Read: 10 Hidden Costs of Buying A Home

Buying a home for first time

Choosing an inappropriate lender:

Buying property is big-ticket expense. Making an outright purchase is often not possible and you will need a lender to finance your purchase. So, make an effort to compare interest rates of various lenders since a minor rate difference can help bring down the property acquisition cost. Also, ensure that the lender doesn’t charge you too many allied fees and keeps the costs transparent. Bajaj Finserv Home Loans, for example, have no hidden charges, and also offer value-added services like property search, property dossier, and customised insurance schemes apart from a nominal interest.

Not understanding what down payment is:

According to norms, non-banking finance companies and banks can advance only 80% of property value as loan. The balance 20% has to be paid by you, and this is called a down payment. It is crucial for you to know about this and plan for it in advance so you can purchase your home with ease.

Additional Read: How to Buy A Home With A Low Down Payment

Knowing about these 5 costly mistakes can help you make your home buying experience as smooth and organised as possible.

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