Mistakes a New Home Buyer Makes

Missteps are common when dealing with something new. Property buying is no rocket science but since a huge amount of money is involved, one should take extra care since they can have serious consequences. Following are the common mistakes made by a first time home buyer.

1)    Delay in investing:
Searching for a right deal and waiting for the rite time is always good but the beginner sometime takes a lot of time to finalize on purchase. Price fluctuation is quite common in real estate and the new investor’s fears if he is paying more for the property. Sometimes investor fears that he does not know everything so he should take some time to understand the market first before making a decision of purchase.
Other times he fears that market may take a downturn and starts analyzing the market very closely, this does not helps him in anyway. It is difficult to read the market and the new investor should understand that he has to make a start from somewhere.  Real-estate is a long term investment and small highs and lows presently are not going to make a big impact on his investment in a long term.
2)    Being ill informed:
The new investor is confused about where to invest and lacks in asking the right questions. He is not aware of the legality involves so is more prone to be cheated.  He believes on whatever is told by the realtor or the developer and does not bother to visit the property himself before finalizing the deal. When one is new to real estate investment he does not have many good contacts, so he should be extra cautious and track the development himself using his commonsense. If you are hiring a realtor in that case it is very important to check his track record before depending on him completely.

3)    Only investing extra money:
Some beginners in the property buying do not understand the urgency of paying back the loan as soon as possible. They take tenure of the loan in such a way that their EMI comes out in accordance to the extra money they have. If you take a loan for 15 years, in that case one actually lands up paying the double of the principle amount to the bank. So, it is always better to take the loan for the least possible tenure.
4)    Buying a wrong house:
Well this is one common mistake made by a new investor. Everyone has a dream to buy a house of their dreams, but affordability is one big issue. Sometimes buyers fall in love with the house at first sight and they overlook things related with transactions deal like property value, tax rate for that particular area, legal issues and location, among others.  Home buying is an emotional procedure so; many buyers end up exceeding their budgets heavily and face the consequences later.
One should note down the budget and should see things practically before making a decision of buying a house. On an average any Indian buys a house only once in his life time. So, if you are taking a wrong decision this time you might not get a chance to improve your mistake later.