Are you deciding to buy a house or have you already started looking for one? If your answer is yes, then I’m sure this article would be helpful to you. You must be aware of the home Buying process especially if you are a first time home Buyer. With an ever-changing market, you must be prepared to face the overwhelming challenges that will arise before you. Buying a house comes with a huge monetary commitment and any small mistake could be financially fatal. Don’t be afraid. With proper planning and some precautions, you can simplify your approach to buying your first home.

How should you start?

The very first step is to study the market well. This will help you to gain information on the current market conditions. This research should include insights into your home buying Budget, the desired property, the location, developer track record, estimated completion date (if you choose an under-construction property), other properties at the same location as per your budget, taxation benefits, eligibility for a home loan. Based on this you can plan your next moves accordingly. Remember, do not conclude your decisions based on irrational facts.

Decide your budget: Planning your budget means calculating your expenses beforehand. Ensure that you have enough savings to satisfy your future expenses as there will be a huge cash outflow in the form of EMIs. Another way around is to know the home loan amount you are eligible for and then plan your budget accordingly. If possible choose a fixed interest rate so that you know how much will you be paying to manage your home loan repayment. Knowing your instalment amount will help you decide a set budget. Make adjustments but do not deviate from your budget. One more thing to consider is the home down payment for your new home. The more you maximise your down payment the lesser would be your EMIs.  

Choosing the right location: There are a few things you need to consider when choosing the right location. It is advisable to personally visit the location and see for yourself the safety of the area, distance from schools, hospitals, markets, workplace and transportation. Buying a property closer to these infrastructures will help you save the time to commute to and from these places. Check the location for similar properties as per your budget to ensure that you are getting the best possible deal.

Select the right home: There are certain do’s and don’ts while buying your first home that should be considered to save yourself from future hassles. Once you choose the location, the next step is to choose the right property that fits your needs and budget. Check the facilities and their functioning that are provided by the developer. You don’t want to spend more money on the repairs later in future. Executing a home inspection eliminates the chances of buying a property full of deficits. Also, choose a RERA registered property to safeguard your interests against the pitfalls in a real estate transaction.

Check your credit score: Your credit score plays an important role in determining your eligibility for the home loan. Maintaining a good credit score can help in getting a bigger amount and faster home loan approval along with certain benefits from the banks. 

Taxation Benefits: As a home buyer you can enjoy smart income tax benefits to take advantage of with your home loan under the different sections of the Income Tax Act, 1961.

Under Section 80C, a buyer is eligible for a tax benefit of up to Rs.1.5 lakhs annually as the deduction. Section 24 offers the home buyers a tax benefit of up to Rs. 2 lakhs annually.

Section 80EE offers home buyers with rebates over and above the deductions offered by Section 80C and Section 24 where you can save up to Rs.50,000 annually.

Section 80EEA states that a buyer can claim an additional Rs.1.5 lakhs above and over the tax benefits under Section 80C and Section 24. So a first time home buyer can collectively claim a benefit of Rs. 3.5 Lakhs under both Section 80EE and Section 24.

A first time home buyer is subject to be a victim of the real estate pitfalls if not careful. In order to avoid such cases, it is always advised to consider taking professional help before taking any step. With the right knowledge and planning, you can not only simplify your home buying journey but also create a future that you always dreamed of.