Most people don’t buy more than one house in their lifetime. With the housing prices already reaching new highs, it’s safe to say you will make one of your biggest investments in real estate itself. However, this also means you can’t afford to make mistakes.
There are many ways to fund a new house, but buying a resale house certainly make sense. For starters, you can an attractive price along with a low home loan interest rate when a seller has too many homes to sell and they are finding it difficult to hold on to them. With these homes, you also don’t have to wait for long once you have made the payment. However, all decisions must be taken with thoughtful consideration as you don’t want to waste your entire life’s savings in a bad deal.
The following are the top 5 things to check when buying a resale home:
An attractive price won’t do you any good if the location of the house is terrible. It commuting from your new house to work will take an hour or more, and other important locations such as railway station, bus stand, schools, markets, etc. are also far away, then you will end up spending a lot on transportation itself.
Other than the distance factor, you also want a house that has a safe and friendly neighborhood. If you plan to sell the house in the future, then you should look into the infrastructural developments around the area that may increase the value of the property over time.
2. Age of Property
Industry experts recommend that you should never buy a house that’s more than 15 years old. This is because older houses require more maintenance than new houses. You also have repair these houses more frequently which means that the maintenance costs are higher. Other than that, you can have a hard time getting a good home loan interest rate, granted you qualify for the same in the first place.
3. General Information
It’s wise to talk to the building’s watchman or a shop owner that’s based near the house. They can tell you everything you need to know about the property such as neighborhood safety, situation of water supply and electricity supply in the area, availability of domestic help, etc. A lot of times the actual homeowners don’t tell everything you need to know. Thus, the opinion of an impartial entity can serve as a vote of confidence.
4. CIBIL Report
You need to make sure that you will be able to get a home loan approved and that too at an affordable interest rate. For that, the most important thing that you must check is your CIBIL report.
Your free CIBIL score should be at least 750 although you may still get the loan is it’s above 600. You should also make sure that there are no negative remarks in the report or details of late payments or loan defaults, etc. as these things can raise red flags for the lender.
5. Due Diligence
There are many sly and deceitful builders in the industry that collect payment from their customers only to vanish from the face of the Earth. Sometimes, they do transfer the rights of the property to the customer in a proper manner but deliberately hide the flaws in the documents or disputes with the property that are yet to be resolved. Since these issues are common, it’s important that you do thorough research about the property before going ahead. A wise thing to do is to appoint an advocate that specializes in real estate. They can go through the appropriate documents and ensure they are genuine.
Buying a house is a huge financial responsibility. The last thing you want is investing in a property that fails to meet your expectations, especially considering that you won’t be able to sell it again at least for a long time. So, take all the precautionary measures including surveying the location, asking around the neighborhood, researching about the area online, and Good luck!
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