5 Ways To Stay Within Budget While Buying Residential Property
Home is one of the costliest assets we will ever own.
We all want a perfect kitchen, large master bedrooms, stylish bathrooms equipped with modern fittings & fixtures, and a spacious lawn. Everything seems right but the problem occurs when we want to spend more than our capacity just to satisfy our over-expectation. Yes, it is true that our homes become status symbols — and often bankrupt us in the process.
There is countless home buyers how feels remorse after purchasing their dream home due to spending more than capacity.
Don’t join their league when you buy your dream home.
How to invest in residential property within your budget
Before rushing to buy residential property, keep your mind cool and consider a durable financial goal firmly in mind. Do not cross the limit of your budget by following these simple steps.
Consider Moving to a Less Expensive Market
The first & foremost step in the real estate investment is to find the best location that comes in your budget. This best location could be your native city or nearby your office, location is the biggest factor that determined the worth of your real estate investment. Outskirts of the cities will generally be cheaper than localities within the center of the city with fast development.
So conditional on the intention of your real estate investment select a location that is perfect for you. For instance, if you like to live in a peaceful & green neighborhood away from the chaos of the metropolitans then consider buying property in the outskirts. If you want to enjoy a contemporary lifestyle close to your office enjoying the public transport facilities then go ahead and invest in an apartment in your favorite metropolis.
Act as Seller & Buyer
Real estate agents are the channel partners of the real estate developers. That’s why they are the best source of information for property value. As a prospective home buyer, you can research both your end as buyer & seller. Shortlist some of the best channel partners in your region and then start a property value survey. First, you should act like a property buyer and ask the property price from some channel partner and then act like seller checkout how much price you will get for the same property. Now you will get the average buying & selling price of the property.
If the difference between average selling & buying price is not more than 4% then it means channel partners are providing you the best rate, and if the difference is more than 4% it means prices are not reliable.
Consider House Hacking
This is the best trick to make any luxury home affordable, but most home buyers never consider it.
What is house hacking?
House hacking is a popular concept in western countries this concept involves buying a property with 2 or more units, moving into one, and renting the others. The rent from the neighboring units can potentially cover your entire home loan EMIs.
Sometimes, affordability does come from working smarter, not harder.
Stop Comparing Your Lifestyle
It is very easy to fall into the cycle of compare & envy.
If your friend, relative, or neighbor just bought a luxurious house for Rs. 1.5 Crore and you are aiming for a budget of Rs. 2 Crore or more, you probably can’t afford to look in the same locality. That’s life.
Rather than envying over the fact that your friend bought a super-luxury home, offer your best wishes and then get excited about what you can find in your fixed budget.
Everyone has their limitations, priorities in life, and long-term financial goals. Concentrate on the best picture, by staying within your budget.
Make the First or the Last Offer
Universal fact: most of the sellers who have listed their property within few weeks still believe that their expected offer is coming.
But on the other hand, sellers who have sat more than 4 months start doubting why they have not gotten the best deals. That makes them ready for below their expectations offers. So, if you are looking for the best residential property at the best price then run a search on the home that have listed on the real estate property portal more than 4 months ago. Visit these residential properties and consider making a series of affordable offers to see who responds.
Conclusion
Staying within budget when buying a house takes discipline. Know what you’re willing to spend, and refuse to look at homes outside your price range.
Don’t be afraid to get creative through strategies like house hacking or moving to a less pricey housing market.
Most of all, be patient. Remember it’s a numbers game, and it’s only a matter of time before the right home comes along.